The banking and financial crisis has deeply shaken the confidence of numerous private investors in the security of the monetary system. A wave of bankruptcies rolled over the world and the fear of inflation is rampant.
During this time of uncertainty, the new electronic means of payment Bitcoin developed. The digital currency is decentralized, valid globally and, above all, protected against inflation. How is Bitcoin doing compared to real money, gold or digital payment services?
First of all, Bitcoin will not be hit by a new banking crisis. It works decentrally, without a bank. The amount is limited to protect the currency from inflation. New bitcoins can be generated through extensive computing power until the specified upper limit is reached. If you are not familiar with the world of crypto, then I advise you to read this article https://bitcoindata.org/the-world-of-crypto/ Precious metals such as gold are also stable in value, but often serve less as a means of payment and more as a means of securing value and are impractical as a means of payment in the digital age. It is not possible to store and send gold bars and coins electronically. On the other hand, gold and Bitcoin share some important properties in addition to their independence from inflation. Both allow anonymous payments, both have a limited amount and are accepted as a means of payment all over the world.
The decentralized currency Bitcoin is publicly available thanks to the open source software. The computer of everyone who opens one of the free accounts becomes part of a decentralized peer-to-peer network, the basis of Bitcoin.Thanks to complex encryption technology, the system is more secure than online banking. Unlike a central instance, the distribution to many computers ensures security against attacks.
Payment with Bitcoin is as anonymous as with cash. The transaction history of each coin is publicly available to verify its authenticity. Payments are made directly between the parties involved in a matter of seconds. Therefore, there are no high fees to a middleman. Accounts cannot be blocked or controlled like with electronic payment services.
Bitcoin combines the advantages of cash and international electronic transfers. Anonymous and in a matter of seconds, like the handing over of cash, yet with a long-term value and forgery-proof like gold, it is, unlike national currencies, globally valid.