Over a decade ago, Bitcoin gained popularity worldwide. I think it’s important to note that today, Bitcoin has achieved a position as the most well known cryptocurrency in the market.
Over the years, blockchain has become known as the technology that brought Bitcoin to life.
Advocates of cryptocurrencies often claim the main advantages over traditional banking systems: they are fast, and they are cheap – this mirrors the capitalistic society where people are drawn to efficient and reliable services at a low-cost.
When international businesses are faced with a choice between waiting 24 hours or more for a wire transfer or paying huge fees for express transactions, Bitcoin sure does sound like a good alternative.
So let’s see how far banks and crypto differ.
Traditional Money vs CryptoCurrency
So let’s start by distinguishing traditional money and crypto. To put it into perspective, the main difference between traditional money and cryptocurrency is that crypto is a decentralized and often global digital currency.
This also means that it is independent from the control of any government. As a result, many people prefer using cryptocurrency as they gain more control over their transactions.
Advantages of Decentralized Financial System
The main advantage of cryptocurrency is the ability to function independently. Most of the cryptos are based on P2P settlement systems and are fully operational at any given moment in time.
Due to its independent system, cryptocurrencies offer businesses and individuals many advantages wherein government entities often control banks and financial institutions.