In what ways Bitcoin is different from traditional currencies?

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Quote from: Iqra.s on September 03, 2019, 06:49:18 AM

Bitcoin can be used to pay for things electronically if both parties are willing. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally.

But is it differs from fiat digital currencies in several important ways?

It only differa from fiat is that Bitcoin could be use as an asset for investment and for trading because of volatility characteristic it have. Bitcoin can give a high return if it is being stored for such a long time unlike fiat.
Next is that the transaction in fiat can be tracked down unlilke bitcoin who is anonymous. Bitcoin is decentralize so it cannot be manipulate by government.

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There is some basic difference between Bitcoin and conventional currencies. since both are using in similar purposes like payment system, trading, investment, and some other ways, but in the basic sense, Bitcoin is fully decentralized and conventional is totally different, I think this is the main difference between these two currencies, On the basis of controlling, Bitcoin is out of control and conventional money is fully controlled by the monetary authority of a country.most important difference is that the price of Conventional currencies is not unstable like cryptocurrency's price. the conventional money market is not volatile like this crypto market, another thing is that Conventional money is unlimited but Bitcoin has a limit, in terms of use, Bitcoin has a low scope of use in the current context, Conventional money has no risk of price but Bitcoin has a lot of risks.

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Quote from: nara1892 on September 28, 2019, 12:21:12 AM

usually paper currency has a maximum transfer limit, so both parties (buyers and sellers) must come to the bank for large transactions (house-purchase for example), of course this is in my country, I don't know if in other places
but with bitcoin you can transfer money without a maximum limit
and also don't forget anonymity and decentralization

Banks has its own security precautions. It may be an advantage and a disadvantage from their customers. Customer doesn't have a choice but to comply with their requirements. Cryptocurrency doesn't have such limit as you said but it doesn't mean it's not safe. Cryptocurrency has advantage on many things like transferring a large amount of crypto valued tokens around the world with just providing lower fees compared to wire transfers. It does have many disadvantages as well.

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Quote from: Iqra.s on September 03, 2019, 06:49:18 AM

Bitcoin can be used to pay for things electronically if both parties are willing. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally.

But is it differs from fiat digital currencies in several important ways?

Bitcoin is a decentralized currency so no one, even the government is there centralizing and having the power over it, the characteristics of Bitcoin’s ascent in tandem with commodities like gold and oil or technology stocks that managed to survive the last tech bubble, it is easier to clarify Bitcoin’s position within the context of past performance and how that may relate to the coin’s outlook while traditional currency is the opposite of it, the government has a say about it and relies on centralized entities like payment processors, central banks, commercial banks, government and etc. Another thing that differs both of the currencies from each other is, bitcoin has a limited supply, unlike the traditional currency. it has unlimited supply. They can issue new money as per the need of ut and manipulate its value relative to other currency.

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usually paper currency has a maximum transfer limit, so both parties (buyers and sellers) must come to the bank for large transactions (house-purchase for example), of course this is in my country, I don't know if in other places
but with bitcoin you can transfer money without a maximum limit
and also don't forget anonymity and decentralization

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They key difference for me is the limited supply. Traditional fiat currencies have the ability to keep printing more of their currency, by nature devaluing the currency, Bitcoin is inherently scarce, meaning it has real value.

Despite the innovations that bitcoin brings this is another great characteristic of bitcoin that cannot be replicated by any other currency, fiat currencies have value just because the governments behind them say so and people trust them, but we know that governments make those currencies from cheap materials that allows them to print an infinite amount of currency which is why through history all fiat currencies have failed.

Even gold that has a limited supply cannot compare itself to bitcoin because we do not really know how much gold can still be extracted from the earth, but when it comes to bitcoin we know exactly how many coins there will ever be and we have a very good idea of how many of them can be created each year which is unheard of since no currency has had that characteristic before.

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If we talk traditional currency or fiat money then there will be someone and a party which is have a right to manage its circulation because it is vulnerable to inflation and its value as well. But bitcoin there is no anyone who can be able to manage it. The circulation is depend on the user itself and also its value just depend on supply and demand which is mean just the user itself who can be able to manage it.

Indeed, the attendance of bitcoin and cryptocurrencies as a whole is media to fight such these things. I really hope cryptocurrencies can take the user (or human being) for a freedom life. I mean, when we use money then it will be good there is no anyone who can set them or even we don't some parties to make everything such as to make a transaction and everything else that related to money.

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Quote from: bitbunnny on September 22, 2019, 05:49:37 AM

First of all Bitcoin is not a currency by default, so everything depends how you use it or how it's regulated.

This mentality needs to change. It is a currency by default and the only is what we should consider if we want to put the bias due to fiat away. This bias exists because we use fiat primarily and it is what is accepted by merchants everywhere. Truely these are differences but the importance of crypto comes from another perspective. It has been made to give our control back to us and not the banks.

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Bitcoin is limited supply, it's not a part of any monetary system, it doesn't have the physical form, only digital, and it's highly volatile. These are to my opinion the main differences. And the way that world's finances are functioning you couldn't survive using only crypto.

These properties would not be possible if again fiat was out of the equation. Think of an economy completely surviving on crypto. Such may not seem possible to many but is possible to sustain. Maybe it wont happen and it would be more of a mixed economy in future.

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Quote from: bitbunnny on September 22, 2019, 05:49:37 AM

First of all Bitcoin is not a currency by default, so everything depends how you use it or how it's regulated.
Bitcoin is limited supply, it's not a part of any monetary system, it doesn't have the physical form, only digital, and it's highly volatile. These are to my opinion the main differences. And the way that world's finances are functioning you couldn't survive using only crypto.

Well here I will oppose your thinking as for me we can use bitcoin to buy anything we want its great currency because time to time we are getting towards digital era and we must adopt crypto currency as money. The only difference according to me is crypto can use as an investment but fiat or other traditional money can not be use as an asset.

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First of all Bitcoin is not a currency by default, so everything depends how you use it or how it's regulated.
Bitcoin is limited supply, it's not a part of any monetary system, it doesn't have the physical form, only digital, and it's highly volatile. These are to my opinion the main differences. And the way that world's finances are functioning you couldn't survive using only crypto.

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Quote from: Tungsten-1 on September 20, 2019, 11:40:34 AM

Quote from: slaman29 on September 20, 2019, 06:21:18 AM

Quote from: virasisog on September 20, 2019, 12:55:46 AM

so simple like it can be illustrated by a elementary pupil, you have a $100 dollar paper bill ,
put it in your wallet the value will stay as it is.buy bitcoin with your $100 , keep it stored in your digital wallet /hardware wallet ,
wait for pump sell it ,the value is different. This is just one reason why bitcoin is distinctly different from tangible currency.

Er, no. You have no idea how money works do you?

Put bitcoin in your wallet. Put $100 bill into your wallet.

And after 100 years you still have the same amount of bitcoin in the wallet, and the same amount of dollars in your wallet.

The difference is, the purchasing power of $100 in 100 years will be different, but guess what, so will Bitcoin.

We THINK BTC value will go up, but we don't really know. We know for sure $ value will go down after 100 years.

I guess after 100 years the value of bitcoin will be multiplied with 100 and it will be so high we can never compare real $ with crypto because value of dollars is depending on the government of any country but the value of bitcoin increases by the patience of the investor i am sure after few years bitcoin in will almost remove fiat currency from this planet.

For me crypto is totally different as we know crypto is more than just a money and real currency is just a source to buy those things which we need for our daily life. We all know that crypto is life changer it can give us all those things which we need in our life. Crypto currency is good so is fiat but we can not get any profit to store dollar for years and crypto is beneficial to store even for few months.

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Quote from: slaman29 on September 20, 2019, 06:21:18 AM

Quote from: virasisog on September 20, 2019, 12:55:46 AM

so simple like it can be illustrated by a elementary pupil, you have a $100 dollar paper bill ,
put it in your wallet the value will stay as it is.buy bitcoin with your $100 , keep it stored in your digital wallet /hardware wallet ,
wait for pump sell it ,the value is different. This is just one reason why bitcoin is distinctly different from tangible currency.

Er, no. You have no idea how money works do you?

Put bitcoin in your wallet. Put $100 bill into your wallet.

And after 100 years you still have the same amount of bitcoin in the wallet, and the same amount of dollars in your wallet.

The difference is, the purchasing power of $100 in 100 years will be different, but guess what, so will Bitcoin.

We THINK BTC value will go up, but we don't really know. We know for sure $ value will go down after 100 years.

I guess after 100 years the value of bitcoin will be multiplied with 100 and it will be so high we can never compare real $ with crypto because value of dollars is depending on the government of any country but the value of bitcoin increases by the patience of the investor i am sure after few years bitcoin in will almost remove fiat currency from this planet.

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Many times asked questions but I want to explain my wish on cryptocurrencies.

There is only one problem which shows the big differences between traditional and cryptocurrencies. Traditional currencies are able to handle in both physical and online options.
We need to have crypto miners and all cryptocurrency crews must create the federation for cryptocurrencies and create the valuable physical notes and coins to use everywhere in the world.

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Quote from: virasisog on September 20, 2019, 12:55:46 AM

so simple like it can be illustrated by a elementary pupil, you have a $100 dollar paper bill ,
put it in your wallet the value will stay as it is.buy bitcoin with your $100 , keep it stored in your digital wallet /hardware wallet ,
wait for pump sell it ,the value is different. This is just one reason why bitcoin is distinctly different from tangible currency.

Er, no. You have no idea how money works do you?

Put bitcoin in your wallet. Put $100 bill into your wallet.

And after 100 years you still have the same amount of bitcoin in the wallet, and the same amount of dollars in your wallet.

The difference is, the purchasing power of $100 in 100 years will be different, but guess what, so will Bitcoin.

We THINK BTC value will go up, but we don't really know. We know for sure $ value will go down after 100 years.

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The decentralization nature of bitcoin has to be the most important feature it has over all traditional currencies. The other features aren't much special anymore as we have traditional currencies which can be transacted digitally and some are been operated on the blockchain in the form of stablecoin although they aren't as decentralized as bitcoin.

When it come to fast transaction, bitcoin is no longer leading the charts same goes for fees and most of the rest features although the fact bitcoin is totally decentralized, has limited supply and its transactions are irreversible without the knowledge of the other party is the advantage bitcoin has as a currency over other currency, be it traditional (fiats) or digital currency.

virasisog

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Quote from: Iqra.s on September 03, 2019, 06:49:18 AM

Bitcoin can be used to pay for things electronically if both parties are willing. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally.

But is it differs from fiat digital currencies in several important ways?

so simple like it can be illustrated by a elementary pupil, you have a $100 dollar paper bill ,
put it in your wallet the value will stay as it is.buy bitcoin with your $100 , keep it stored in your digital wallet /hardware wallet ,
wait for pump sell it ,the value is different. This is just one reason why bitcoin is distinctly different from tangible currency.

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https://www.fxempire.com/education/article/the-difference-between-fiat-money-and-cryptocurrencies-520616
https://medium.com/air-wallet-official/fiat-vs-cryptocurrency-pros-and-cons-9695fd107cf4
https://finance.yahoo.com/news/difference-between-fiat-money-cryptocurrencies-132027811.html
https://www.investopedia.com/ask/answers/041615/what-difference-between-fiat-money-and-representative-money.asp
https://www.fxstreet.com/cryptocurrencies/resources/brokers-what-does-fiat-currency-mean

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Quote from: Iqra.s on September 03, 2019, 06:49:18 AM

Bitcoin can be used to pay for things electronically if both parties are willing. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally.

But is it differs from fiat digital currencies in several important ways?

Difference between currencies is that bitcoin has fixed supply which is really fixed and fiat - not, governments print as much as they wish and then again we have to pay for their debts while on bitcoin that's impossible.
To my mind this is difference between currencies but whole new wave of differences come when we look bitcoin as a payment method. Compared to traditional methods which are done by using fiat aren't anonymous while bitcoin offers cheap and secure transactions (of course finally it'a still not cheap because exchange fees).

GreatArkansas

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I'll add also one of the main difference of Bitcoin to other traditional currencies, seems like someone is missed it.

LIMITED SUPPLY. Bitcoin has limited supply, unlike fiat currencies which are almost owned by the government and we don't know until when they gonna print and how much is the total supply. While Bitcoin, only 21million bitcoins will be produced

Trivia about the 21million bitcoin supply:

Quote from: https://www.express.co.uk/finance/city/895187/bitcoin-price-how-many-bitcoin-are-there-when-will-cryptocurrency-token-run-out

Interestingly enough, bitcoin will technically never reach the 21 million limit, because the exact value is in fact 20,999,999.9769 bitcoins.

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Quote from: Iqra.s on September 03, 2019, 06:49:18 AM

Bitcoin can be used to pay for things electronically if both parties are willing. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally.

But is it differs from fiat digital currencies in several important ways?

That doesn't make bitcoin at all different to normal and regular currencies. Both parties are willing, and both pay. What's the difference in dollars or bitcoin?

I would add that Bitcoin is also programmable money, though some alts are better at that. Escrow functions, or time release. Something you couldn't do with dollars.

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