DIFFERENCE IN MONEY & BITCOIN

Know more about money exchange, categories, and bitcoin here

Bitcoin is a type of cryptocurrency, a digital currency that was created in 2009 by Satoshi Nakamoto. It is a virtual form of money and can be used to buy things. And you can transfer it from the bank as well. Last year PayPal allowed its customers to buy bitcoins from their company. All the bitcoins transactions are done online and managed by many computers.

Cryptocurrency has other forms too but it is the most popular and most acceptable currency in the world. Things can be bought from bitcoins but this currency is still not acceptable by some markets or shops. It is not confined to any country. It is a currency that is useful worldwide irrespective of my national currency. For more information,  

If we talk about the block of bitcoins that increased from 1 MB to 2 MB. But these MBs will decrease in 2020. Bitcoins stability increases as the increase in number of MBs.

Bitcoin is not money. In this article, we will see why money and bitcoin are different from each other. Although bitcoin is related to currency it is not money. Learn more about the currency by visiting BitQL.

Difference between Money & Exchange Mechanism:

There is a difference between money and exchange mechanisms. Money is a currency that you keep in your wallet. You buy things with that money. Money is touchable and you can hold it too. On the other hand, an exchange mechanism is a process in which money is converted into another form. You can transfer the money by the online system or by hand too. 

An exchange mechanism is something like that if you buy things from the money it means you are exchanging money for that particular thing.

It is not for bitcoin because bitcoin is not money you can convert your money into bitcoin and then transfer it from one place to another.

Categories of Money:

Money has been divided into three types. The first is asset money. The second is to claim the money. And third is fiat money. Asset money is defined as the use of the asset in different ways. Like gold coins can be used as money. But if you melt the coin, the gold can be molded again and can be used for different purposes too.

A claimed money can be defined as a type of money in which a bank deposits the money for exchange. For example, If you buy something then in return you got a card that you are asked to redeem. When you will redeem it in the near future you'll get a good thing for sure.

Fiat is a Government Issue currency in which the government gives orders to the central bank to print the current that is a fiat currency. You cannot exchange fiat currency from the government and in return if you want something. 

Categories of Money Exchange:

There are three types of money exchanger mechanisms. The first is physical transfer. The second is electronic transfer. The physical transfer is defined as the transfer of money in the form of cash, coins, etc. 

For example, a customer wants to buy a coffee, and he would pay the bill through cash. He can send the check by mail as well. But he handed over the money to it physically. The other type is an electronic exchange which is defined as the transfer of money by an online system. In this method a lot of companies are involved which transfer the money from one person to another, secure and safe.

Conclusion

In this article, we have read that there is much difference between money and bitcoin. Money is a currency that you hold or keep with yourself. But a bitcoin is like a digital currency you cannot hold it. You can only store it on your computers.

But there is an exception that you can convert your money into bitcoin. And then these bitcoins can be transferred from one place to another. So it is clear from the above explanation that bitcoin is not money but money can be converted into bitcoins.