Bitcoin innovation was a revolutionary change in the digital currency market. Since the invention of bitcoin, it has transformed the world of online payment and investment. Bitcoin can be both bartered and can be stored for long-term acquisition. Since the crypto market will always remain combustible, it has aided many investors in the biticodes. The components that make bitcoin special among other cryptocurrencies are it provides secure, quick, decentralized, and unidentified movement of money from one user to another internationally, making it a more preferred currency over other virtual currencies.
Bitcoin has a supply cap of only 21 million, of which about 80% of bitcoins are already mined. Due to a restricted supply, no bitcoin will be left behind to be mined momentarily. Therefore, it will cut down the supply of bitcoin in the market and boost prices regularly. Other virtual currencies do not have a limited supply, leading to a spare flow of currencies in the market and decreasing prices.
Features that make bitcoin special: –
Decentralized platform: –
Bitcoin is free from the centralized channels where the money flows under the supervision of the government. The governments do not possess any role in bitcoin transactions. You can make unidentified multinational or domestic payments because choosing a centralized medium to transfer funds is sometimes impossible, like oil trading. Oil trading has many countries’ massive and across-the-board payment procedures; you can’t wholly rely on banks and other financial institutions.
As bitcoin is genuinely a decentralized digital asset, all the nodes in the bitcoin network should have a unity agreement over the blockchain reward creation. Node is a kind of computer network connecting independently operated computers in a network over the internet. The decentralized feature of bitcoin makes it unique from all the other currencies.
Censorship resistance: –
There is a long history where the seizure of anonymous private property and unwarranted searches by the governing bodies had remained in the long history. Today, the decrease in fiat currency has seen a shortage of people using fiat currency as a medium of exchange. The payment system has updated to the digital world. Reducing the need to visit physically to pay someone, whereas you can make those payments using other mediums, whether through online payment services or anonymous movement through virtual currencies.
The thing that makes bitcoin the most valuable unique feature asset is using bitcoin; one can transfer funds anonymously and anywhere in the world. The information related to transfer can’t be founded. Only the information that is available over the internet is the wallet address. The address shown over the internet remains completely anonymous. It requires a private key to open it. Bitcoin completely supports the law of the right to privacy. But the money laundering law requires conducting the customer’s identity proof to complete the KYC process. It is necessary for the exchanges that convert fiat currency to virtual and virtual to fiat currency.
Limited capital: –
Around 80 % of total bitcoin is already mined. Bitcoin is not created. It is mined, and those who mine bitcoin are known as miners. The mining process is done using a super powerful computer network, and this computer consumes an enormous amount of electricity. The limited supply cap will always create the demand for bitcoin, ultimately resulting in a hike in bitcoin prices. The limited cap of 21 million will never be changed unless the consentient consensus of the decentralized bodies and those elected into services. It is one of the unique features that bitcoin holds.
Immutable: –
The transactions of bitcoin are immutable. It means transactions on the bitcoin network are stored in the blocks. The new blocks are added to the existing ones. None of the entities can erase or affect the information on the blockchain. Network nodes verify bitcoin transactions through cryptography and later record a public ledger on the blockchain. Immutability brings transparency, trustworthiness, and corruption-free transactions.
Conclusion: –
These are some of the attributes of bitcoin that make bitcoin distinctive from an investment and trading point of view. It is correct to say that bitcoin has gained trust among the users, and every new user is keen to invest in bitcoin. Its durability, acceptability, limited supply, divisibility, and fungible asset make it unique from all the other currencies.
