How does bitcoin currency work and how is it different from traditional currencies?

3 answers

• Jan 14, 2022 · 3 years ago
  Bitcoin currency operates on a decentralized network called blockchain, where transactions are verified by network participants known as miners. Unlike traditional currencies, bitcoin is not issued or regulated by any central authority, such as a government or central bank. This means that bitcoin transactions can be conducted directly between users without the need for intermediaries. Additionally, bitcoin's limited supply and deflationary nature make it different from traditional currencies that can be subject to inflationary pressures.
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• Jan 14, 2022 · 3 years ago
  Bitcoin currency works through a process called mining, where powerful computers solve complex mathematical problems to validate and record transactions on the blockchain. This decentralized system ensures transparency and security, as every transaction is recorded and cannot be altered. Unlike traditional currencies, bitcoin is not physical and exists only in digital form. It can be stored in digital wallets and used for online transactions. Bitcoin's decentralized nature and cryptographic security features make it a unique and innovative form of currency.
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• Jan 14, 2022 · 3 years ago
  Bitcoin currency operates on a decentralized network called blockchain, which is a public ledger that records all transactions. It is different from traditional currencies in several ways. Firstly, bitcoin is not controlled by any central authority, making it immune to government interference or manipulation. Secondly, bitcoin transactions are pseudonymous, meaning that users can conduct transactions without revealing their identities. Lastly, bitcoin's limited supply and decentralized nature make it a deflationary currency, unlike traditional currencies that can be subject to inflationary policies. At BYDFi, we believe in the potential of bitcoin and other cryptocurrencies to revolutionize the financial industry and provide individuals with greater control over their money.
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