#8 Reasons Why Bitcoin is Better than Conventional Currency Bitcoin is nothing but a virtual currency or a medium of conducting digital transactions, just like any other digital currency.

By Vishal Gupta

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pixabay

The latest buzz word, in the world of digital currency, is Bitcoin.

Bitcoin is nothing but a virtual currency or a medium of conducting digital transactions, just like any other digital currency. So what make it better than our conventional currency?

Lately, the global interest in bitcoins has grown. So, it becomes extremely important to understand the base of this and all other forms of virtual currencies. Bitcoin, and its alternatives are all based on cryptographic algorithms which are encrypted. This makes the currency decentralized giving ownership to the user.These can be purchased through an online exchange or a Bitcoin ATM. Landmark feature of a bitcoin is that it can curb the chances of fraud and identity thefts, and hence is considered a safe mode of holding money.Bitcoins allow buying of goods and services online, as well as transferring money.

Below are a few benefits of using bitcoins which make it better than any conventional currency:

  • Bitcoin is digital and decentralized – With Bitcoin people get the liberty to exchange value without intermediaries which translate to greater control of funds and lower fees. It's faster, cheaper, more secure and immutable. Cash is controlled by banks while bitcoin has owners.
  • Ease of online shopping: As we already know, Bitcoin can help us do online shopping. It's like an e-wallet which can be created blockchain technology to store, track and spend digital money.
  • Less volatile than cash: Bitcoin has a global acceptance and is less volatile than cash / local currency. Due to this feature, it becomes easier to conduct transactions across boundaries and online.
  • No real way of keeping a track of conventional currency- The underlying technology behind bitcoin, which is, blockchain is what makes or breaks it. Thousands of computers in a distributed network use cryptographic techniques to create a permanent, public record of every single Bitcoin transaction that has ever occurred. This record will be very valuable for various things besides tracking payment. While there is no real way of tracking cash.
  • Great tool for investment- Bitcoin can be used all over the world without going through a conversion process. It is considered at par with Gold and combines the best of cash and gold while providing an open market and no restrictions imposed by banks or governments.
  • Bitcoin is peer-to-peer and open, yet secure and nearly frictionless - Bitcoin allows exchanging value over the internet without any intermediary and gives its users access to their balance through a password known as a private key. So it's private, secure and at the same time,open.
  • Duplication impossible - There is no way of duplicating a bitcoin, unlike cash.
  • Great way of maintaining records for tax purposes: Once transferred, a bitcoins' ownership also gets transferred. This means that two people cannot be transacting on the same value and this will help keep records healthy and simpler, especially for tax purposes.
  • Transnational digital currency – There are no boundaries to Bitcoin or cryptocurrency. No exchange values and no third party interventions. Bitcoin allows seamless transactions across nations with a ledger getting maintained at the backend.

Vishal Gupta

CEO, SearchTrade

Vishal Gupta is the Co-founder and CEO of Searchtrade.com, a disruptive search platform which allows its users to ‘own’ keywords and earn in Bitcoins while they search on the internet. Vishal aims to bring about a paradigm shift in the way people search on the internet. He sees great potential in Bitcoins or cryptocurrencies as an alternative transaction system and believes in the opportunities that it can bring to the internet economy. He also holds a patent in Computer Implemented Methods and System for Trading Keyword(s) in a Search Network.

Prior to SearchTrade, Vishal co-founded Bitcoin Alliance India in 2014 - a non-profit organization, encouraging the Indian market towards bitcoins and related services. Today BAI engages with various law firms and government departments to help them understand Bitcoin or Crypto currencies in order to help them come up or frame laws to legitimize use of bitcoins in India.

Related Topics

Business Plans

She Wrote An 'Escape Plan' to Quit Her Job and Move to an Island. Now She's There Generating Nearly $300,000 A Year

"My detailed, step-by-step plan on how I would quit my job and move to a Caribbean island."

Growing a Business

Employee or Friend? How to Maintain Boundaries with the People Who Work for You

You want to cultivate an amiable atmosphere at work with your team. But sometimes, the line can get blurry between "friendly" and "friends." Here's how to keep roles clear and relationships healthy.

Growing a Business

You Hate Taxes. This Viral Content Creator Loves Them.

Tax specialist and content creator Duke Alexander Moore discusses progress over perfection, making viral videos, and helping others become creators.

Starting a Business

Ask Co-Founder of Netflix Marc Randolph Anything: How to Watch

How to watch the new live streaming episode of 'Ask Marc.'

Leadership

5 Steps to Take When Navigating Tough Decisions in Business and in Life

Objective decision-making is a critical component to arriving at the best conclusion. Here are five ways to find that balance.