BTC coins

4 Differences Between Bitcoin and Traditional Currency

A financial crisis that shocked the world back in 2008 is one of the most important occurrences that marked the future of the global economy. As you can remember, its effects were pretty severe on a plethora of different elements and industries. One of the, let’s say, positive side-effects to this whole story was the creation of cryptocurrencies.

While there are no direct links between the creation of these, many people believe that their creation was under the direct influence of this financial crisis. This theory goes so far that many people believe that the whole intention was exposing all the bad sides to the traditional way of doing business. The arrival of cryptos on the stage marked a significant change in various different industries, not just finances. Now, we can see that there are a lot of political movements that were directly caused by it.

Now, we are witnessing a new era that will change our perception of financial systems forever. There is one more thing that heavily influenced the popularity of cryptos. We are talking about the global pandemic of coronavirus. Cryptos like BTC suffered a heavy drop during the first quarter of the year. However, they managed to recover completely in the last two months and we are on a brink of a new record when it comes to its worth.

Even though we can see that there was a lot of skepticism towards digital currencies, we can see that people treat them much more seriously these days. If you want to learn more about this change of heart, you can take a look at eng.ambcrypto and inform yourself a little bit better about it. Anyway, we would like to talk about the most important differences between traditional currencies and BTC. Without further ado, let’s begin.

1. Anonymity

The first difference we would like to point out is the anonymity you will be able to have when you are using digital currencies, particularly Bitcoin. For example, it doesn’t really matter which one of these you are using, you will be able to have full control over them, without being asked to provide your personal information. It’s needless to say that this is the main reason banks are against this whole concept.

We are not talking about some conspiracy theory. We are talking about pure common sense. This is an approach that’s vastly different from the traditional ways, and banks wouldn’t like to choose their clients, right? Plus, there isn’t any kind of authority you will have above you, no banks and no governments.

2. Flexibility

Next, we would like to point out why digital currencies are much more effective when it comes to the pace of transactions. Surely, you are aware of the fact that there are some restrictions when it comes to the traditional way of conducting transactions. Any user could wait for up to a couple of days before the transaction is fulfilled. Just think about it, when the transaction is made on Friday, you could wait until Monday before you can withdraw your money.

Plus, we can say that, since there are so many restrictions, the accumulation of money can lead to some serious inflation. However, we need to say that it is important to be patient since not all BTC coins are mined as a whole. We can even see that some predictions can say how much time we need to wait before all of them are at our disposal. But it doesn’t matter how much of it the market will have, there will be no inflation.

3. Low Taxes and Fees

We are witnessing that banks have pretty high transaction fees. Add to that the fact that you could wait for up to a couple of days before you can get your money, and you have a bad situation. However, we can say that this kind of situation would be a standard if there weren’t cryptocurrencies to interfere. If these are so high when you make local transactions, just imagine their fees when we are talking about international transactions. They would be high, right?

When it comes to Bitcoin and other cryptos, you will see that these taxes and fees are not so high as is the case with traditional transactions. Plus, the receiver will have all the coins in its e-wallet pretty much the same moment they were sent. The same goes both for local and international transactions. Therefore, you shouldn’t worry about something like that. Relax, and do whatever is that you need to do.

4. A New Level of Security

For those who are not aware, we would like to say that all cryptos are supported by the blockchain system. We are talking about a system that has numerous layers of security that represent the main one that protects your coins from all the malicious outside influences. Therefore, you can expect that you will have much more protection for your coins than for the money we have on our credit cards.

While there is some room for these breaches, we can see that the largest part of the system is so well-protected that we can say there are zero chances of them being breached. The situation when you don’t provide any kind of personal information surely helps, right? Plus, the only valuable information is the addresses of the sender and a receiver. If these two are protected in the best possible way, there isn’t a chance of you losing your money for these reasons.

The Bottom Line

Even those differences we’ve named can be considered crucial, we can see that there are tendencies that tell us we will see the merge of these two concepts in the future. While this merge will not be complete, we can expect that the best elements of both approaches will be combined into one. Without any doubt, the result of this mixture will surely mean the future of the financial world. The repercussions it will cause will be pretty significant and it will have a massive influence over the future of our civilization, you can be sure of that.

Top 9 Interesting Facts on Mining Cryptocurrencies

Are you into cryptocurrencies or Bitcoin in particular? Maybe you are slowly getting into this world? It doesn’t really matter if you are a pro or a beginner, this article is for everyone! In fact, right here we will discuss and explain some interesting and unique facts that you probably didn’t know of. Keep on reading and find out a bit more and enjoy these 9 facts regarding mining cryptocurrencies!

1. The ”real” father and founder of cryptocurrencies

Bitcoin is known as the very first cryptocurrency, and it is the most talked-about cryptocurrency in the world, wouldn’t you agree? However, the history of money based on cryptography goes back to times way before Bitcoin! In fact, DigiCash is the ancestor of Bitcoin, although without blockchain.

Because of that, it didn’t jump to mainstream use and it wasn’t as talked about, ever. Its creation dates back to the early 90s. It was founded by a young American crypto enthusiast David Chaum. He wanted the transactions to be anonymous, and it wasn’t controlled by any government financial bodies.

2. The first-ever Bitcoin transaction was for pizzas

Are you a pizza lover? If so, you will find this fact super funny! The first-ever transaction was for two pizzas that were bought for 10 000 BTC. This happened in 2010, and once converted to real money, this was around 25 USD back in that time. Currently, Bitcoin is worth 6 500 USD, which means that these two slices would have been 65 million USD! Laszlo (the pizza lover), has significantly overpaid his two slices. It is one of the most talked-about topics online, on some forums, as well as among Bitcoin & cryptocurrency fanatics!

3. The first-ever BTC faucet gave away 5 BTC per one user

This may sound a bit shocking, but this has happened in 2010. The creator of the website called Gavin Andersen allowed each user to receive 5 Bitcoins as creating the account. This way the creator was promoting his site, his game, as well as the crypto value itself. Nowadays there is a huge gap and everything is different with faucets. For instance, a site called Bonus Bitcoin allows you to claim 5000 Satoshis every 15 minutes. Once converted to dollars, this is about 0,3$, depending on the current Bitcoin price. You will get around 5-10 Satoshis for free on most sites, which is quite little nowadays.

4. There are other even smaller units

Most people worldwide believe and feel as if Satoshi is the smallest unit since it is considered as almost nothing. Bitcoin is divided into 8 zeros after the decimal point, as you probably know it by now? However, this doesn’t mean that you can’t divide Satoshi as well. Once you do the math and the equation, you will get a unit called Millisatoshi, which equals one-thousandth of Satoshi.

5. The bitcoin wallet

Did you know that there are Bitcoin wallet private keys? Well, they are integers from 1 to 10 to the power of 77. If you were to guess a private key of a BTC wallet, you would have to spend years exploring it. You would have to have a lot of computing power. These mathematical equations are something that others haven’t witnessed just yet. If you are a crypto user and you want a crypto wallet, just know that it is a bulletproof solution, literally!

6. At one point, there have been 184 billions of BTC

You are well-aware of the Bitcoin blocks, right? Well, a block number 74 638 has had a unique error a few years back. This led to the creation of a huge number of new BTC coins, over 180 billion of them! However and in only 5 hours, experts were able to create a new version of Bitcoin called 0.3.10. Because of this glitch, a huge amount of Bitcoin was ignored, but people have accepted the change.

7. No one knows about the real and true inventor of Bitcoin

The most popular cryptocurrency in the world doesn’t have its rightful owner written next to its name! Was it one person, persons, or an entire organization? We still don’t know, even to this day! Thus far a lot of people have stepped up and have tried to claim Bitcoin. However, none of them were credible and you couldn’t believe their statements. People believe that a creator of bitcoin is Satoshi Nakamoto, hence the name Satoshi’s (read the fun fact number four). However, another popular belief is that it is an acronym for some larger names & tech giants, such as Samsung- Toshiba-Nakamichi-Motorola.

8. Bitcoin has been banned, is your country still on the list?

Did you know that some countries can ban cryptocurrencies completely? Although this can be quite hard to do & determine whether if it is the right move to do, the following countries have made the call:

  • Algeria
  • Bolivia
  • Ecuador
  • Nepal
  • Bangladesh
  • Cambodia

9. Cryptocurrencies will do more good than harm

Think about eCommerce, and embrace cryptocurrencies! Internet connectivity is available in third world countries, which is great. On the other hand, opening a bank account over there can get difficult. Bitcoin and similar currencies will help eCommerce reach a lot of people in the world. Cryptocurrencies are great as a payment tool, and they can come in handy – no matter where you are in the world (as long as if it is not one of the previously mentioned six countries).

Want to give it a try?

So, what do you think of these top 9 facts? Did you know some of them already? Or maybe you know something that we don’t, so care to share in the comments down below?! Either way it is, everyone can fall in love with Bitcoin and the world of cryptocurrencies. If you want to know a bit more about them as well as the trading check, give a click! They have answers to some of your most-asked questions.