Let’s understand Bitcoin and its characteristics

In 2009, the digital currency, Bitcoin was created. It is a decentralized cryptocurrency that depends on the blockchain, a peer-to-peer network for recording transactions instead of other official regulatory authorities. No physical Bitcoin exists, and its value can widely swing based on the market. To get assistance in Bitcoin investment, becoming aware of some of its characteristics is necessary.

Transparency:

  • How much value of the cryptocurrency an individual owns cannot be known? But the transaction values made by each user will be visible on the ledger board.
  • The Bitcoin receivers will also be visible in platforms like https://btqapp.io/.
  • So there is complete transparency of its transactions to all in the Bitcoin ecosystem.
  • With proper analysis of the mentioned history on a ledger board, the asset that a person owns can be known easily if anyone wants to check it.
  • However, different things can be done to prevent this too.
  • One can increase their wallet’s security in many ways.

Decentralized:

  • Decentralization is one of the most vital characteristics of Bitcoin.
  • No central power is there in Bitcoin.
  • They are part of traditional currencies and a central authority issue and manages them.
  • It can be the government or other organizations of the country.
  • The decentralization of this cryptocurrency offers various benefits over traditional ones, such as no vulnerability to tax, seizure, thievery, and so on.

Opaqueness:

  • The Bitcoin user will stay anonymous.
  • No one can track back to its user.
  • No need for legal papers as it will not assist in identifying the person.
  • This is the reason why the government is also unable to know the person of a specific account.
  • But when you open a bank account or make some transactions through it, they will be demanding an address, contact number, and legal papers.
  • On transactions, banks will be having a proper history of the date, time, money, receiver, and other details too.

Quick:

  • In comparison to other banks and other transaction methods, Bitcoin is quick.
  • Sending money from one part of the world to another will be done within a few minutes if it is sent in Bitcoin form.
  • But if the same money is sent via another bank or any other method, it will approximately take one week or more than that.
  • So people use this cryptocurrency for different online transactions.

Cannot be repudiated:

  • If Bitcoin gets transacted once, it would not be any getting back until the receiver is ready to do it.
  • So there is not any going back.
  • The receiver will never be able to claim that he did not receive any Bitcoin.

Digital currency:

  • They are never present physically in the form of coins or notes, unlike any traditional money.
  • Thus it can be carried easily on mobile phones.
  • Thieves will find it challenging to steal it from anyone’s house or the market.

Easy to set up:

  • Banks usually take up lengthy documentation and process to open an account and manage it, from credit check, dealer records, the requirement for the various legal papers to identify the user.
  • But simultaneously, an address can be made in Bitcoin within some seconds without any requirement of legal documents.
  • You must be setting up a strong password. Never forget the password as if you forget the password once, you will never get it back.

Determination of value by demand:

  • Bitcoin has no price or value.
  • Its price and value depend entirely on the demand.
  • In the market Bitcoin’s price and value are determined by the ecosystem’s members.

Own choice commission:

  • If you wish to give a few transaction fees or not will depend on an individual’s choice.
  • If you pay some transaction fee, you will get some extra facility, but its absence will not be harming those who will not pay it.
  • It is completely voluntary.

Conclusion

All these characteristics of Bitcoin make this cryptocurrency different from other traditional currencies. Apart from these characteristics, some are like money that makes Bitcoin function like money. These characteristics are durability, portability, recognisability, fungibility, divisibility, uniformity, acceptability and limited supply. If you are a beginner, then there are many sources where you can get hold of the guide for having a clear idea of ways of trading and using it in various transactions and payments.

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