Important Distinctions of Bitcoin from the Convectional Currency

Bitcoin is a form of digital currency that is produced by people running computers all over the world, using software that solves mathematical problems. This electronic payment was proposed by a software developer known as Satoshi Nakamoto. His aim was to produce a currency that will not rely on any central authority, and that which can be transferred electronically and with very low transaction fee. Bitcoin is not physically printed; it is mined using computing power in a distributed network that also processes transactions, making it a payment network of its kind. According to the rule within which bitcoin operates, only 21 million of this currency can ever be produced. However, these coins can be divided into smaller parts of up to one hundred millionth of a bitcoin called a Satoshi Slot. Here are some of the important features that make it different from other currenciesEasy to set up: In just a few seconds, you can set up a bitcoin address without being asked any questions and with no payable fees. This is unlike the conventional banks where you have to jump through hoops to open a bank account.

Decentralized: This prevents it from being controlled from one central authority, which puts people at ease because a large bank cannot control their money.

It is transparent: This is because a block chain stores every detail of each single transaction that has ever been executed in the network.This means that if you use it publicly, anyone can tell how many bitcoins are stored in that address, though they won’t know that it’s yours.

Expediency: As soon as the network processes payment, the money arrives minutes later, irrespective of the destination.

It is anonymous: This is because users can hold multiple addresses that are not linked to names or other personally identifying information.

They are non-refundable: This implies that once you send your bitcoins, you cannot get them back unless the recipient chose to give them back.

It does not charge any fee for international transfer whereas other banks do.

Unlike the normal conventional currency which has been based on gold or silver, bitcoin is based on mathematics. This mathematics formula is freely available, such that everyone can access it. The software is an open source in that you can check on it to ensure that it is meeting your expectations. It also keeps money flowing even if part of the network goes offline.