Now, since we know what bitcoin is, its history, working, learning about its characteristics can’t be ignored. In this article, we are going to know about some of the characteristics of bitcoin which will help you wealth matrix.
The first and most crucial characteristic of bitcoin is its decentralization. There is no central power in bitcoin as there are in traditional currencies, which are issued and managed by a central authority, which can be the country’s government or any other organization. Bitcoin decentralization provides many advantages over traditional currency like no vulnerability to seizure, tax, thievery, etc. You can read our article “How decentralization of bitcoin ensures advantage over traditional currencies?” for more detailed information.
It is well known to us that how much bitcoin does a person owns can’t be known, but at the same time, it is visible to everyone on the ledger board that how much transaction has been made by which user and who is/ are the receiver/receivers of the bitcoins. So, its transaction is crystal clear to everyone in the ecosystem of bitcoin. And from this mentioned history on the ledger board, on a proper analysis, the asset owned by any person can be easily known if one wants to. But many things can be done to prevent this too.
Now, we don’t need to tell you repeatedly that the user of bitcoin remains anonymous, and there is no chance of tracking back to the user. No requirement of any legal paper helps in the identification of the person. And this is also the reason that no government can even know who is behind a particular account. At the same time, when you make an account in the bank or make transactions through the bank, they will demand address, phone number, legal papers, and on transactions, they will have a good history of date, time, amount, receiver and every other single detail.
As compared to other banks or any other method of transaction, bitcoin is faster. Sending money from one side of the world to another side of the world is a matter of just a few minutes if sent in the form of bitcoin. Simultaneously, if the same amount is sent through any other bank or method, it will take approximately a week or more.
What comes under this characteristic is if bitcoin is transacted once, there is no getting back unless the receiver is willing to do so. It means there is no going back; the receiver can’t claim that he never received any bitcoin.
Bitcoins are not physically present in the form of notes or coins, unlike traditional money. And in this way, it is easy to carry in the phone. It is tough to be stolen by thieves in the market or from the house.
Simple to set up
Generally, banks take long documentation and procedures for in opening an account and managing it, including dealer records, credit checks, even they need many legal papers for identification of the user, but at the same time, you can make an address in bitcoin in a few seconds, without any need of any legal documents, you need to set a strong password and must not forget that password because once that password is gone. There is no getting it back.
Value is determined by demand
There is no fixed value or price of bitcoin. For its value and price, it entirely depends on its demand. The members of the ecosystem of bitcoin determine the cost and value of bitcoin in the market.
Commission of own choice
Whether you want to give some transaction fee or not is entirely according to your choice. The only difference is that if you pay transaction fees, you will be provided with some additional facility whose absence won’t harm non-fees paying users in any way. It is entirely voluntary.
These are some of the characteristics of bitcoin, which makes it different from the traditional currency.
Other than these characteristics, some other characteristics are similar to money, which makes bitcoin function as money. Such characteristics are portability, durability, fungibility, recognizability, durability, recognizability, divisibility, acceptability, uniformity, limited supply.
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