Bitcoin is Differs from Fiat Digital Currencies

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Bitcoin is Differs from Fiat Digital Currencies
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Index

1. Bitcoin
2. Decentralization
3. Limited Supply
4. Pseudonymity
5. Immutability
6. Divisibility

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Bitcoin

• Bitcoin can be used to pay for things
  electronically if both parties are willing.
• In this sense, it's like current dollars, Euros,
  or yen, which are also traded digitally.
• But it differs from fiat Digital Currencies in
  Several Important Ways

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1. Decentralization

• Bitcoin's is the most important characteristic is
  that it is decentralized.
• No single institution controls the bitcoin
  network.
• It is managed by a group of volunteer coders and
  run by an open network of dedicated computers
  spread around the world.
• It attracts the individuals and groups that are
  uncomfortable with the control that banks or
  government institutions have over the money.

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• Bitcoin solves the "double spending problem" of
  electronic currencies through an ingenious
  combination of cryptography and economic
  incentives.
• In electronic fiat currencies, this function is
  fulfilled by banks, which gives them control over
  the traditional system.
• The integrity of the transactions is managed by a
  distributed and open network, owned by no-one.

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2. Limited Supply

• Fiat Currencies have an unlimited supply Central
  banks can issue as many as they want and can
  attempt to manipulate a currency value relative
  to others.
• Holders of the currency bear the cost.
• On the other hand, supply is tightly controlled
  by the underlying algorithm.

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• A small number of new bitcoins trickle out every
  hour and continue to do so at a diminishing rate
  till a maximum of 21 million has been reached.
• It makes bitcoin more attractive as an asset - in
  theory if demand grows and the supply remains the
  same, the value will increase.

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3. Pseudonymity

• While senders of traditional electronic payments
  are identified, users of bitcoin, in theory,
  operate in semi-anonymity.
• Since there is no any central validator, users do
  not need to identify themselves when sending
  bitcoin to another user.
• When the transaction request is submitted, the
  protocol checks all the previous transactions to
  verify that the sender has the necessary bitcoin
  as well as the right to send them.

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• The system does not need to know his/her
  identity.
• In practice, each user is identified by the
  address of his/her wallet.
• Transactions can be tracked in this way.
• Also, law enforcement has developed methods to
  identify the users if necessary.

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• Furthermore, the most exchange is required by law
  to perform identity checks on their customers
  before they are allowed to buy or sell bitcoin,
  promoting another way that the bitcoin usage can
  be tracked.
• Since the network is transparent, the progress of
  a particular transaction is visible to all.
• It makes bitcoin not an ideal currency for the
  criminals, terrorists or money-launderers.

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4. Immutability

• Bitcoin transactions cannot be reversed, unlike
  the electronic fiat transactions.
• If a transaction is recorded on a network, and if
  more than an hour has passed, it is impossible to
  modify it.
• While it may disquiet some, it does mean that any
  transaction on the bitcoin network cannot be
  tampered with.

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5. Divisibility

• The smallest unit of a bitcoin is called a
  satoshi. That is one hundred millionth of a
  bitcoin (0.00000001) - at today's prices, about
  one-hundredth of a cent.
• It could conceivably enable microtransactions
  that traditional electronic money cannot.

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• Click on Below Link Bitcoin and Blockchain
  Technology Explained
• https//youtu.be/oSP-taqLWPQ
• Click on Below Link How to Earn one Bitcoin a
  day Free
• https//youtu.be/dm9Ztbu5s4M

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