The Main Differences Between Bitcoins and Traditional Currencies

It’s perfectly true that Bitcoin is disrupting certain industries, including the banking industry. The only thing that slows the implementation of Bitcoin as a reliable and secure payment system is that it’s not regulated. This makes people skeptical about its long-term existence. That’s why people still prefer traditional currencies. But what are the differences between Bitcoin and traditional currencies: let check them out:

Bitcoin is more durable than traditional paper currencies

One characteristic of Bitcoin is that it doesn’t exist in its physical form. That means the bitcoins can’t be damaged in any way. Traditional currencies, such as paper money and coins can easily be damaged. Paper money can be damaged when exposed to high temperatures or when it comes into contact with water. Traditional coins can be damaged when exposed to high temperatures.

Bitcoins cannot be counterfeited

The design of Bitcoin means there is no possibility to counterfeit it. The blockchain technology and strong algorithms guarantee the legitimacy of Bitcoin. With these powerful security measures, even the savviest hackers can’t access and transfer your Bitcoins. Paper money can easily be counterfeited. We often see on TV and read newspapers about confiscation of counterfeit currencies. But it’s hard to come by news about counterfeit Bitcoins.

Bitcoin is decentralized

An authority administers traditional currencies.  That’s means each transaction passes through a traditional bank, where the sender is charged a hefty fee. On top of that, it takes days for the money to reflect on the recipient’s account. Bitcoin, on the flip side, is a decentralized digital currency, which means no third-party controls it. It’s built upon communication and cooperation of people partaking in it. Due to that, transactions will still go on, even if a glitch affects part of the network.

Unlike traditional currencies, Bitcoin transactions can’t be reversed

If you send money to the wrong Bitcoin wallet, there is no way you can reverse the transaction. You can only get your Bitcoins back if the recipient resends them back to you. This aspect was implemented to mitigate Bitcoin fraud. With traditional currencies, transactions can be reversed. The sender only needs to make a call.

Bitcoin is accepted worldwide

While popular currencies like the dollar, Euro and Pound are accepted worldwide, some currencies cannot be accepted beyond borders. Bitcoin, on the other hand, is accepted universally and you can easily buy something from another country using it.

Conclusion

With this rundown, it’s easy to see why Bitcoin can disrupt the financial industry if it’s accepted by most countries. But with Bitcoin owners hard at work to make the network secure, transparent and fast, it might defy the odds and become the new currency of the world.