Yes! Our topic today is “Why Cryptocurrencies Exist?”.
Virtual VS Fiat Money
- As an alternative to traditional currency.
- To address weaknesses in traditional currencies which are backed by central bank and government (prone to corruption and manipulation among a host of other issuer).
- Unlike traditional currencies, there is no governing body that hacks Bitcoin and other cryptocurrencies which means they aren’t subjected to anybody whims.
- Bitcoin is completely decentralized, open source and transparent. You can see all transaction that have ever been done on the network and you can check and renew the blockchain data yourself to verify the authenticity of each transaction.
- Bitcoin runs on highly complex mathematical algorithm to regulate the creation of new bitcoins and to make sure no double spending ever occur in the network.
- The Bitcoin code is so secure and advanced that it’s virtually impossible to cheat the system so if you’re thinking you can create an unlimited number of bitcoins; you are greatly mistaken.
- The Bitcoin Protocol states that only 21,000,000 bitcoins can ever be mined and creates which means that Bitcoin is, in fact a scarce resource.
- Bitcoins are divisible, like cents to dollar. The smallest bitcoin is called Satoshi : 1⁄100,000,000 until you finally get a whole bitcoin.
- Highly portable. You can bring it anywhere you go.
- Bitcoins are not subject to bank and government regulations (No need to pay hefty bank fees which you incur whenever you send payments to other people).
- Instant payment (10-45 minutes).
Next : How Bitcoin Work