What Are The Differences Between Bitcoin And Physical Money?

In this article, we will see the differences between Bitcoin and physical money. Why are more and more people choosing virtual currency over trust money?

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Differences between Bitcoin and physical money

There are some important differences between Bitcoin and physical money. The most important ones are:

Freedom to pay.
Fees.
Security.
Transparency.
You can’t freeze your money.

Freedom to Pay

The first, the clearest and most obvious is the freedom to pay, as you can send any amount of money to anyone anywhere in the world in a very short time.

There is no limit to how Bitcoin works, it works 24 hours a day. You can send money on weekends, on holidays, you just have to have money in your Bitcoin wallet.

There are no limitations, like in banks that only work during certain business hours and even at certain times for the transfer they don’t work, like on weekends or holidays.

Bitcoin allows you to make massive transfers, with incredible security and at a speed that banks don’t have.

Of course, the most important thing is that you always have control over those situations, you have the freedom to make payments or receive money at any time.

bitcoin money 2

 

Fees

The second big difference is the fees. Because we do not have an intermediary, the transfer fees are always lower, always very small compared to the bank fees.

When you have a bank, you have those monthly fees that everybody pays, you always have transfer fees when you transfer from one bank to another, you pay a fee and not counting the taxes you pay on transfers.

This is one of the big factors that sets Bitcoin apart from physical money.

For example, bitcoin is not subject to absurd exchange rates. Of course, you also pay a fee, but it’s a very small fee compared to bank fees, so that’s the second big advantage, lower transparent rates.

 

Security

Bitcoin’s third big advantage over trust money is security and privacy beyond control.

First, the Bitcoin protocol known as Blockchain is extremely secure.

The protocol was created so that there is no fraud. Transfers made from one location to another with Blockchain are validated by several servers in different locations and not always by the same servers.

That is, the hacker to hack would have to know which servers are, how many servers there are because each transaction is validated by a certain number.

This is a logic created by the protocol itself. This transaction will be validated in several places and can be validated in Japan, in China, in Europe, in the United States, in Canada,
can be validated in 4 or 5 different locations or ten locations before this transaction is approved.

This gives very high transparency to the security because the hacker to hack would have to know which computers to hack into to take control and intercept the money.

This is a great security advantage because it does not have a validation point, a fixed control port.

With Bitcoin, you don’t have to link personal information in transactions, so when you make a transaction it’s completely private.

Only you know your transfer information.

Banks record the transactions that are logged when you make a transfer from one person to another who records this information.

So your bank has this information, has access to the information so this is one of the great advantages of privacy and security and of course he is in control of everything.

 

Transparency

The fourth big advantage of Bitcoin over money is transparency.

Of all the transactions with Bitcoin, despite being private, they are totally transparent.

That is, the Blockchain protocol makes it available on the Bitcoin network for anyone who wants to know all the transactions with the only feature that has no way of knowing who it is and who the transaction was for.

For example, I and the person who received the money do not know my identity, but they can verify that the transaction took place because that is public information.

Read also: Bitcoin and its Mysterious Creator

There is no public way to identify who you are but there is a public record that identifies that the transaction was made, with valid receipts.

The possibilities of not being controlled by anyone, and not having a handling center, makes it totally difficult for any kind of fraud to occur, so this is one of the great advantages of Bitcoin over physical money.

 

You can’t freeze your money

Another very important advantage is that your wallet with which you have your Bitcoin money cannot be frozen, it cannot be captured by a government, for example, as happened in Argentina with the famous “corralito”, where thousands of people could not access their so precious savings.

With Bitcoin, there is no way for politicians and governments to access our money because there is no central control.

You are the only owner and only you can take that money and do what you want with it, and send it to the person you want anywhere in the world 24 hours a day without any restrictions.

This is a huge advantage of Bitcoin over money because you are in control of your finances and no bank can freeze or block your account because with Bitcoin this could never happen.

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