Bitcoin behaves differently from other conventional currencies and these differences are what make Bitcoin such a powerful and highly sought-after currency.

Let’s take a look at a few noteworthy features that distinguish Bitcoin from traditional currencies.

  1. Bitcoin is Decentralized
    • Unlike conventional currencies which are subject to regulation and supervision by a Central authority, Bitcoin works on a peer-to-peer network that is powered by its users and is completely independent from any bank or government.
  2. No Physical Form
    • Bitcoin is fully virtual – it can be used to exchange online credits for goods and services from several retailers and online businesses around the world. It is therefore an intangible form of money and as such bitcoins are stored in digital wallets.
  3. Bitcoin has Scarcity
    • The total number of bitcoins that are expected to be created will never exceed 21 million. While traditional currencies can be issued whenever governments or Central banks decide, bitcoin’s supply is limited.
  4. Bitcoin is not Ubiquitous
    • Although bitcoin’s acceptance has grown all over the world, the digital currency has not yet been embraced by the world at large. That makes it impossible to rely entirely on bitcoin for all payments.
  5. Transparency
    • Bitcoin payments can be made without personal information tied to the transaction.
  6. Payments are Irreversible
    • Bitcoin transactions are not reversible, however, they can only be refunded by the receiver of the funds.