Conventional currencies are affected by inflation, which means that your money loses value from time to time. Governments and banks are looking forward to a period of high inflation that forces people to consume more.
An investors always avoid inflation, which makes Bit coin a very attractive option. At one point, only one million Bit coins 21 will be created, which leads to a state of deflation.
Thousands of computers in a distributed network use cryptographic techniques to create permanent and public records of each Bit coin. This ensures that the records are up to date, simpler and healthier for tax purposes. Also, you must be responsible for tax purposes and tracking payments.
It’s a decentralized currency
The virtual currency is based on encrypted cryptographic algorithms and this makes it a decentralized currency, in addition to the fact that it is neither owned nor regulated by a government. The benefits of a decentralized currency such as 1 bitcoin include
- Reduced fees
- No broker
- Better control of funds
- It’s faster, cheaper, immutable and safer
The value of the conventional currency, on the other hand, is controlled by banks and other financial institutions. Bit coin, on the other hand, belongs 100%.
Bit coin is the most popular and used virtual currency in the world and since its launch in 2008; he faced his fair share of ups and downs. Due to its volatility, its price change has seismic effects on other virtual currencies.