Today, the Bitcoin system includes a huge amount of funds, so in fact it began to exist not only in virtual mode. Earlier, bitcoin was a set of bytes in the blockchain, and later a section of the volume of dollars spent on its acquisition was added to it. For example, a user spent $ 10,000 to gain the opportunity to acquire data bytes, so he probably would not want to sell them cheaper.
Due to the existing relations between people in the contractual context and the exchange of fiat money, the cryptocurrency market can change. So, it is quite possible to repeatedly increase the value of a coin for 1 trading day by 1 thousand dollars. Over the history of the existence of a digital currency, its value could fall extremely low in one day, and then rise instantly, exceeding the previous mark several times.
Bitcoin is also characterized by the availability of training material in different languages of the world. Absolutely every user has the opportunity to study an article, watch a video, and attend a conference with the aim of more in-depth familiarization with a coin. Today there are a huge number of analytical sites with information on currency forecasts, news channels, and various subject books.
Here, a cyclical connection is observed and they look like this:
Bitcoin occupies a large part of the market – bitcoin is sold and is “in the language” of many people. Accordingly, the more they talk about this cryptocurrency, the more it will expand the area of influence and cover the market. Of course, one cannot fail to note the growth in popularity of other coins, but it is Bitcoin that is the driving force.
The know about difference between electronic cryptocurrency and ordinary money here at bitcoin and traditional currency
In order for ordinary money to appear on the account in electronic form, it must first be physically deposited into the account, for example, through a bank or payment terminal. That is, for a regular currency, the electronic form is one of the forms of physical embodiment.
Cryptocurrency is issued directly on the Web and is in no way associated with any ordinary currency or with any state currency system. Thus, we can say that “cryptocurrency is a type of electronic money.
Reliability: Hacking, faking or performing other similar manipulations with virtual currency will not work. In most cases, a commission is charged exclusively on a voluntary basis.
Limited cryptocurrency. As a rule, cryptocurrency is issued in a limited volume, which attracts increased attention from investors and excludes inflation risks due to excessive activity of the issuer. Thus, the cryptocurrency is not subject to inflation and is inherently a deflationary currency.
There is no commission for the transfer of funds between countries.
This factor in the context of bitcoin can be both an advantage and a disadvantage. So, if the cost of cryptocurrency is high, this causes a restriction on the entry to the market of people who have a small amount of funds, but it attracts organizations and people who own large capital. Interestingly, it’s too expensive to buy electronic coins, but selling at a higher cost is quite nice.
The variability of the value of the coin gives users the opportunity to multiply and lose their own investments with a particular solution. Here, such user criteria as experience, patience, calculation, peace of mind are important.
In addition, there is no accurate information regarding the amount of money that is actually invested today. This means that you can’t even calculate the approximate real value of an electronic coin.
Anonymity is a rather controversial criterion that can do harm and good at the same time. In order to remain unknown, some rules must be observed:
- creating separate addresses for each transaction;
- a ban on transfers between your own addresses;
- a ban on combining funds from various addresses with one payment;
- a ban on storing MTC in the clouds;
- use of military-technical cooperation in local mode;
- local node output to the network should be through a proxy, which, in turn, needs to be changed during each operation;