Comparison Between Bitcoins And Traditional Payment Modes

Many people wonder why Bitcoin has such high values when they see people using the bitcoin era app? It is understandable that it provides the best means of monetary transaction where no dealing of hard cash is involved, but does it justify the high value it has? Don’t you feel that Bitcoin is overhyped? Well, this blog will clear your confusion. 

Investors always look for better and profitable investment options. Initially, people didn’t think of investing in Bitcoin because of the price. Gradually when Bitcoin started taking control of the financial market, investors started growing interest in it. Some years back as well, the price of Bitcoin dropped, but it rose again. If you consider profits with the traditional investment profit, now, in the present market Bitcoin is much ahead of the traditional investment options. Here we will discuss how these two contradict in terms of profit margin. 

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Liquid Asset

Liquid assets always hold much more importance than others. Bitcoin presently is recognized as one of the most popular liquid assets that attract investors automatically. The universal establishment of Bitcoin exchanges, brokers, and trading platforms has achieved the place of the most liquid asset. This makes it instantly transferable and thus most popular. The ease of transaction without any third-party involvement is where Bitcoin differs from the traditional investment options. 

High Demand 

Often, investors question Bitcoin’s value and market demand. This is the reason for their hesitation as well. However, unlike the conventional investment plans, Bitcoin can ensure high market value for some years at least. Unless there are some technological disasters, the value of Bitcoin will undoubtedly not fall, if not increased. 

Minimum Trading

The Stock market is one of the popular modes of conventional investment where you need to hold a license to prove your identity and trading record. For processing this, the investors must visit a broker. The settlement is a lot time-consuming. On the other hand, the investors can directly purchase Bitcoin and store them in their wallets. 

Divisibility

Typically, successful currencies are capable of being divided into small incremental units. To allow a single currency to function properly as the medium of a transaction, it has to be flexible because that is directly associated with divisibility. It is imperative for the currency to be divided sufficiently so that the value can accurately reflect throughout the entire economy. 

Transferability

Another important quality of the currency should lie in its transferability. It must be easily transferred within a particular country, or between nations. Bitcoin in this case is highly transferable because it includes no geographical barriers. Bitcoin is not country-specific so one Bitcoin owner can perform the transaction from any point of the world to another point.

Accessibility

Often the place becomes a barrier for you where you need to convert the currency for making a transaction. Currencies vary from country to country in terms of names and values. For Bitcoin, you can access it from anywhere in the world and make transactions without converting the currency because for all over the globe, it has the same value. 

Control

With digital currency and associated organization to control it, you are dependent on them and they have full control over your account. Your Bitcoin wallet is your own. You don’t have to share your wallet with anyone. You will have full control in it in terms of exchanging or transferring. 

Privacy

For traditional currencies, if you open an account with any organization, it asks for detailed information and ID and address proof to open an account for you. Bitcoin doesn’t need detailed personal information so you can stay anonymous here. No centralized organization will be able to get your information in case you don’t want to share those with them. 

Limit

For conventional currencies, there are limits for the transaction. However, a person can make transactions of unlimited Bitcoin. There is no limit and none will ask for a charge for that. Bitcoin involves a transaction fee but that is a minimum amount if you don’t have an emergency to process it. 

Many studies explained that Bitcoin is securer and more convenient than handling conventional currencies, but this is not a certain thing yet. The future will speak about its effectiveness itself. 

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