Do You Know What Gives the Exact Value to Bitcoins?
In this world of digital virtual life, the new invention of the digital currency must be something really magical and different from the traditional money. Some characters that a new digital currency must have been listed here, you will be able to judge it for yourself.
- The new digital currency must be void of any third-party involvement in it. So that no party gets to intervene in any particular transaction nor are they able to print or mint new coins as per their will. Plus, there would not be any control for the fact which would determine who all can use the digital currency and for what purpose.
- The digital currency must not have any physical or virtual border as it must be capable to be sent across the whole world.
- The money should not be more with a particular class of people and less with another group of people. It must be equal or sufficient with anyone who cultures or trades it.
In other words, these are the qualities of the bitcoin or the digital currency which is currently on fire all across the world. There has been a bitcoin-revolution since 2009 and it became worldwide in a very short time.
Characteristics of Bitcoin in General
In the above paragraph, we explained what criteria does a bitcoin hold or must hold as a digital currency. But here we will discuss what are the actual qualities that a bitcoin holds and also some factors about bitcoins,
- The world’s first digital currency and also decentralized is the bitcoin
- It is also the first such digital currency in which no person, government or organization can control or monitor bitcoins.
- Anyone and everyone can be sent or receive it from anyone and everyone from anywhere on earth.
- There is no inflation in this kind of money and it is also free from oppression largely. It is also free from any kind of dictatorship.
- It is a safe haven for anyone who uses this kind of money or is into this trade.
- It has a total amount of stock of 21 million bitcoins, and this number or amount can never be changed.
- Everyone who uses bitcoin knows how many bitcoins are currently revolving in the market at what price and how many more are in the stock
- Many of the countries have legalized the use of bitcoins and those countries are usually the first world countries. So it becomes a little disruptive to understand why does a first world country who already has a well sound economy would require bitcoin.
What is the Problem with Traditional Money?
If we take the real situation into consideration, then we will find that traditional money is completely controlled by some organization or the government. In other words, it means that the amount of the flow of the currency in the economy is determined by the authorities who maintain it.
Now there are some very simple techniques which come into use by the governments’ intervention and as a result of it what happens is the government as the power to print more money. The fact is that the government needs more money than what is incurred through taxes and another form of payments to the government. So they have their own power to print money according to their wish and withdraw more money from the economy. Hence, they control the flow of the money in the system.
The flaws that are present in the traditional currency is missing from the system of the bitcoins. The distribution amount and the flow of the bitcoins in the financial sector of the world are very clean and transparent. These give value to bitcoins more than money is valued.