The difference between Bitcoin and traditional currencies is its decentralization, which makes Bitcoin uncontrolled by anyone. Bitcoin is also trying to reduce the cost of using the system, rationalizing the removal of handling fees and reducing transaction times, both of which cannot be avoided in order to maintain operations at traditional banks.
Bitcoin tries to break away from traditional currency processing methods and, of course, it is inevitable that Bitcoin will compete with traditional currencies.
Of all the differences between Bitcoin and traditional banks, the most obvious point is that Bitcoin does not depend on any third party authority for transactions. Instead, it depends on the comprehensive computing power of network participants, and each participant is the same – no one is more or less important than the others.
“A problem could then manifest itself in relation to this aspect, since, in case of loss of confidence in this alternative means of payment, its value would fall dramatically.
The federal reserve creates millions of new dollars year after year, which affects and depreciates the currency’s value. This does not happen with Bitcoin, as it has a limited issuance of the currency, it is controlled all the time by the prospectors, who program the issuance of new cryptocurrencies. create more offers, but this payment method was designed to have a maximum number of units, so it will be created until reaching 21 million, always following the predetermined algorithm. There are currently around 13,300,000 Bitcoins in circulation.
Finally, an important differentiating feature is portability. Due to its weight and size, it is difficult to physically move any of these traditional currencies, but Bitcoin, being a virtual currency, can be transported from one part of the world to another in a matter of seconds over the internet.
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