Nowadays, the ” Digital Currency Bitcoin ” is very popular everywhere because the price of the bitcoin has skyrocketed in the last five years compared to the common currency. In 2011, the price of 1 bitcoin was 1 US dollar, and today the price of 1 bitcoin Equivalent to about 58,700 US dollars.
But here the question arises, what is this bitcoin? In fact, it is a type of digital currency, ie cryptocurrency, and there are many other such digital currencies in the market, but the graph of Bitcoin’s popularity is the highest among them all. How is this completely different from the traditional currency? they know.
Facts about Digital Currency Bitcoin
Ordinary traditional currency is centralized ie the government or any responsible institution (bank) can run it at its own discretion while the corrupt currency is decentralized which does not operate under the authority of any institution or government. Understand that in a business, if two people are transacting money, it is not necessary to involve the bank or the government.
In every country, the central bank has all the records of currency such as money transfer (transfer) and during this transfer bank fees, taxes, and various types of compensation are also deducted. However, this is not the case with corrupt currency. , It is limited to buyers and sellers only. You can easily track the currency through the bank while in cryptocurrency your wealth is fully owned by you and there is no risk of money freezing.
The physical State of Bitcoin
Every currency has some form like paper, note, or coin but the form of cryptocurrency is just a form of data in a computer i.e. it has no physical form. The commonly used currency can be printed by the institution at any time and in any number and the price goes down in case of inflation. While cryptocurrency is limited in its own right, it cannot be created arbitrarily.
In fact, the idea of a cryptocurrency emerged after the 2008 financial crisis, in which experts suggested a currency for the future that did not require the involvement of a third party (bank, government) in the transaction. Because cryptocurrency is decentralized, it is controlled by the people who are using it. A system has been set up around the world to operate this currency through computer networks, under which transactions of this currency are recorded. Therefore, whenever a transaction is made using a corrupt currency, the eyes of the whole world are on it through a computer network, so that no dishonesty or counterfeiting can take place in this currency.
Experts on cryptocurrency say that this method is safe for money transfer and the risk of hacking and theft is less than in normal currency. However, the government’s views on cryptocurrency are contrary to its experts, the government’s point is. It is easy to keep a record of currency through any bank but it is not easy to keep a record of corrupt currency that is why people use the corrupt currency for illegal activities. Therefore, in view of this growing popularity of cryptocurrency all over the world. Governments are reviewing new rules for this currency so that records of transactions in this currency are available.