Cryptocurrency or digital cash has gained enormous popularity in the recent past and Bitcoin has proved itself to be the best example of the same. In fact other cryptocurrencies like the Litecoin, the Ethereum etc., are said to be quite similar yet distinctly different from Bitcoin.
What is Bitcoin
Simply speaking, the Bitcoin is an electronically created digital currency which can also be held electronically. Complex algorithms called the ‘Mining Bitcoin’ are used to create this cryptocurrency, the discovery of which, by itself, is nothing short of a financial revolution according to https://www.coinmarkets.net/currencies/ripple/.
Difference with traditional money
Bitcoin is very different from the traditional form of money. While the traditional money has a certain structure and form, Bitcoin is digital cash and hence has no real form. Another very important difference in the two is that while the traditional money flow is controlled by the bank, the whole process of Bitcoin is decentralised. This means that no institution which either singly or in groups has the capability of controlling it.
Reasons for its popularity
There are several reasons for the popularity attained by Bitcoin. Some of the most relevant and important reasons are:
- Decentralisation: The whole process of Bitcoin is made up of a complete synchronisation of many computers working together. Hence every computer contributes to the process and makes up that part of the whole system wherein no single authority has the ability to take away a person’s savings. This puts people at ease since they know that their money will be secure since no single authority has the right to take any decision regarding their money.
- Set-up is easy: Setting up a Bitcoin account generally does not take more than few minutes while the setting up of a bank account to store cash can take a lot of time. The Bitcoin system set-up is also free thereby accounting for its popularity.
- Anonymity: The ability to transact while still remaining anonymous is perhaps the biggest advantage that cryptocurrency has. Thus Bitcoin users are free to have as many accounts as they want while at the same time ensure that there is no link connecting the same.
- Transparency: Details of all steps taken are effectively stored in a virtual ledger namely the blockchain. These details cannot be altered by can be pulled out any time the user wants. This transparency also accounts for its popularity.
The Bitcoin is fast, accepts no fees and also has broader applications. This makes itthe most popular and the best cryptocurrency being currently used. This revolutionary process has now become an apt symbol of the wide acceptability of the cryptocurrency.