If you’re reading this, you probably know what Cryptocurrencies are by now. But if you don’t, then do yourself a favor and Google it right now. Cryptocurrencies are digital assets that use cryptography to secure digital assets and verify transactions as well as prevent fraud and counterfeiting.
Bitcoin is the most popular type of cryptocurrency – its retail value peaked at about $18,000 in December of last year. It was the first-ever digital currency created by someone using the alias Satoshi Nakamoto, an alias for an individual or group that does not wish to be identified. Since then, other digital currencies have come into existence and many more have been introduced each year with some supplanting Bitcoin while others have remained niche players. Here are five features of Bitcoin that make it the ideal cryptocurrency
Decentralized in nature
Bitcoin is a decentralized network. It means that the network is governed by an open-source software protocol, which means that anyone can access the network and view the transactions that are taking place on it. The network is also governed by a decentralized public ledger. This means that there is no single entity that controls the network. The network is controlled by a distributed network of computers. This is one of the reasons that it is considered to be an ideal cryptocurrency. You can trade Bitcoins on Stellar Profit or any other online Bitcoin trading exchange.
You can’t shut down the network, there’s no single party to hold responsible for what goes on the network. This is unlike centralized networks, where the owner of the platform holds the key to its successful operation. The decentralized nature of Bitcoin makes it a safer option as there isn’t a single party to be held accountable.
It’s an open-source network
This is similar to what we just talked about. Bitcoin is a decentralized network that anyone can join. Anyone can start their Bitcoin node, copy the data and make changes to it. It’s a decentralized network that anyone can join, anyone can start their node and anyone can verify the transactions on it. The network is governed by a public ledger that is decentralized and is verified by thousands of nodes. It means that you cannot have a central authority that holds the power to shut down or alter the public ledger. What you see is what you get. It also means that you don’t have to trust anyone else to verify the public ledger for you.
It has a limited supply
As we talked about earlier, the network is governed by a decentralized public ledger. This is verified by thousands of nodes on the network. The ledger contains the record of the transactions that have taken place on the network. One of the benefits of a decentralized network such as Bitcoin is that it has a limited supply. That’s right. It only has Bitcoin in circulation and this is what makes the network decentralized. You cannot simply print more Bitcoin and distribute it to the public. It’s all done by a blockchain algorithm that allows smart contracts.
It’s transparent and verifiable
This is also one of the five features of Bitcoin that make it ideal. The public ledger is transparent. This means that anyone can view it and verify the transactions that have taken place on the network. It’s also verifiable. This means that anyone can check the data on the public ledger. The network is decentralized, which means that it’s transparent and verifiable. This is unlike centralized networks that hold certain data or are not transparent or are not verifiable.
It has no transaction fees
This is also one of the features of Bitcoin that make it ideal. The network doesn’t charge any transaction fees. The public ledger is verified and transparent, which means that the transaction fees are not required, either. This is unlike centralized networks where you are required to pay some sort of fee to have a transaction confirmed on the network.
Bitcoin, on the other hand, doesn’t require any special infrastructure to operate. It’s just a blockchain network that anyone can join instantly. You don’t need to pre-register with a bank or go through a long approval process to get a bank account. You can simply download an application, join the network and start transacting. This is unlike centralized networks where you have to go through a long approval process and get a bank account before you start transacting.
Conclusion
Bitcoin is a digital currency created by an individual or group using the alias Satoshi Nakamoto. It has many features that make it a desirable asset as a cryptocurrency. These include decentralization, limited supply, transparency and verifiability, and no transaction fees. These attributes make it more secure, liquid, and durable than fiat currencies. The only downside is that it is not very user-friendly for those who are new to Cryptocurrencies. But once you get the hang of it, you’ll be glad you invested in Bitcoin.