How is Cryptocurrency is Differ from Traditional Currency

three round gold-coloredcoins


  1. Decentralized : no authorized institution or a central bank involved in the bitcoin network.
  2. Limited supply : Fiat currencies like dollars, euros, yen unlimited supply where the central bank can print as many as they want but in bitcoin that is not accessible like that. It is tightly controlled by an algorithm. 
  3. Pseudonymity : in a normal currency we know the identities when transactions happen but here the system does not need to know their identity. But that does not bring bitcoin to any criminal situations because it can be tracked and since the network is transparent, the progress of selective transactions is visible to all. 
  4. Immutability : unlike fiat transactions bitcoin transactions cannot be reversed because it can create a possibility to modify the transaction. 
  5. Divisibility : the smallest unit of bitcoin is called ‘satoshi’ it is one hundred millionth of a bitcoin (0.00000001) so this could be microtransactions that the traditional electronic money cannot. 

Post a Comment

0 Comments