Characteristics of Bitcoin

Bitcoin is a digital currency that is set apart from government-backed/fiat currencies with no central authority. Here are some important features listed below:

Characteristics of Bitcoin
Characteristics of Bitcoin

Bitcoin is Decentralized

It is decentralized meaning no individual or business can control and govern it. There is no control by a central authority. Every program(s) and or machine that mines bitcoin and processes transactions makes up a part of the network and the machines work together. This way, there are no rooms to tamper with it with any monetary policy, creating a meltdown. There is also no room to simply take people’s bitcoin away from them just like the incident that happened way back in 2013 as the Central European Bank decided to do in Cyprus.

Bitcoin is Easy to Set up

Compared to conventional banks and the tedious task involved in owning a bank account, with bitcoin you can set up a bitcoin address in seconds, no questions asked whatsoever, and no fees payable.

Bitcoin is Anonymous and Transparent

Users can hold multiple bitcoin addresses and there are no connections to names, addresses, or personally identifying information. However, when it comes to being transparent, bitcoin stores details of every single transaction that ever happened in the network in a huge version of a general ledger called the blockchain. The blockchain gives vital information, such that anyone can tell how many bitcoins are available at that address. It also includes the amount or number of transactions and the addresses of the recipient but they do not know it is yours. However, you can take certain measures to make your activities more opaque such as not using the same bitcoin addresses consistently.

Bitcoin Transaction: Fast and Low-Fee

Unlike outrageous bank charges for local and especially international money transfers and delays in transactions, with bitcoin, you can make payments from anywhere in the world. Additionally, it is fast with very low gas fees with the recipient receiving it within a couple of minutes

Bitcoin Transactions Are Non-Refundable

When transactions are made, it is not refundable. The only exception is if the recipient sends it back to your address. Or else, it is forever gone. Therefore, it is important to always cross-check and be sure about the addresses you want to send to before proceeding.

Bitcoin has a lot going for it in theory, that you’d have to do some reading up, but practically, there’d be a need to also make use of it and see things for yourself

My last article was about a simple basic introduction to bitcoin,. Check it out for easy understanding if you have not!

Personal Note From MEXC Team

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