Bitcoin is a newly evolved means of making transactions to and from anyone from all over the world. It is based on the platform of a decentralized network which means that it is not under the control of the government or the bank. Having cleared this, it is obvious that the users are eliminated from the need to inform or take the government or the bank’s approval before making any payment. Not only does this save the users from heavy bank charges and transaction fees, but it also helps them to maintain anonymity as payments made through bitcoins are difficult to trace back to the owners.
The whole talk has been about the benefits of using bitcoins but the real deal is how to weigh the value of Bitcoin. The true value of bitcoins can be emphasized when compared with fiat currency which is the currency that is issued by the government.
Before we can jump to the value of the bitcoins, it is necessary however to start with the general importance of the common currency itself.
Defined as the actual store of value in the form of money, the currency is how the value of goods, commodities, and services can be weighed and valued. Throughout history, people have been using metallic coins as currency to make payments for goods and commodities. This system was then shifted to the use of paper money, which then further progressed to electronic means of making payments.
How does Bitcoin take things a step ahead Vs Fiat Currencies?
The government has quite a steady control over the supply of fiat currency which is heavily dependent on and influenced by the economic situation of the country. This rule, however, does not apply to Bitcoin. On the contrary to the tight control of the government over the fiat currency, bitcoins are generated viewing not the economic factors of the country but instead on the number of users using this form of payment method. For further details about this technology, you can also visit the bitqz website.
Unlike a dollar that is further divisible into cents, bitcoins have a potential for greater divisibility as it is further divided up to eight decimal points. This means that the actual value of each unit of bitcoin equates to 0.00000001. Since every tiny unit of bitcoin carries value, therefore people owning the tiniest percentage of bitcoins can still perform active transactions. These people will be at a further advantage when over time, the value of bitcoins begins to take a surge.
Every transaction that is made using bitcoins is not saved as core data with the government or the bank. Instead, it is saved as blocks as part of blockchain technology. Blockchain technology is decentralized which means that it is not answerable to the higher authorities. This further works as a bonus for the users as they are saved the hassle of getting a third party involved in their transactions.
When transferring bitcoins whether nationally or internationally, you do not have to worry about the costs of the transactions or the size of the amount being transferred. Unlike fiat currency, you can send and receive a massive amount of bitcoins without having to associate with a third party or organization to make the transaction. Moreover, these payments are made within minutes and have very low transaction fees.
Bitcoins are not subject to getting lost or destroyed as is the case with the physical form of fiat currencies. Unlike the paper money that we carry to make payments which may get destroyed or lost, bitcoins have no such issues involved. Bitcoin can neither be destroyed nor lost as it is securely maintained in the bitcoin wallet.
Keeping the above factors into consideration, it is quite clear that bitcoins take a higher stand when it is compared to a fiat currency. However, weighing the actual value of bitcoin is not all that easy as it seems like the real value of this mode of transaction is heavily dependent on how much acceptability it receives.
Whether this technology picks up its pace in the international markets or industries or becomes subject to a decline is tightly connected to how widely it is used by the marketing sector of the world.