Other significant difference is that unlike fiat, Bitcoin is not sovereign. These processes also include in-depth surveillance and data-sharing on everything you do with your money. Any of those organizations have an authority to decide whether to approve your transaction, whether you can send money to certain people or organizations, or if the money you’re using is legal or not. In contrast, fiat currencies rely on centralized entities like central banks, commercial banks, governments, payment processors like VISA or Mastercard, and other intermediaries. No one can have an influence over your money and transactions you send or receive. Additionally, it helps bring down the cost of using the system by ideally eliminating fees and transaction times, both of which banks need to stay in business. It relies on the combined computing power of the network participants, each of which is equal among themselves - nobody is more or less important than the others. It allows Bitcoin to be an independent peer-to-peer money system that can function regardless of anyone's wishes. The main difference of Bitcoin from traditional currencies lies in the fact that no one controls Bitcoin as it is decentralized. Here is how gold, fiat currencies, and Bitcoin compare in the context of these traits. Recognizable - it is recognized and accepted as a means of transaction.Fungible - each piece has the same value as its equivalent.Scarce - cannot be replicated without end.Durable - does not wear away or depreciate through time or in certain conditions. Portable - can be easily carried around.Non-consumable - cannot be consumed for purposes other than an exchange of value.Divisible - can be turned into smaller pieces for certain uses like paying a specific amount or micro-payments.For the currency to be useful and convenient, it should be: Over time, people noticed the most desirable traits that money should have.
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