Are you wondering what the difference between bitcoin vs. traditional money you use daily is? The bitcoin price is much different than your average dollar. So we will walk you through the comparison between virtual money and the money you use to buy your coffee. Here are a few tips and tricks to know about bitcoin and traditional money.
1. Anonymity
There are many differences between bitcoin and traditional money. One of which is that bitcoin can offer anonymity, while traditional money does not.
Every time you swipe your credit card, your information is attached and companies can use that to track your daily activities. Bitcoin offers full anonymity, You can buy just about anything online without your information being tracked.
The exchange rate between bitcoin to traditional money is quite extensive as well. One bitcoin is equal to $9,200. This also means that when you deal with bitcoin, most likely you are only getting a fraction of a bitcoin that you can use to buy the products you want.
Bitcoin doesn’t offer safety, though. That can be the risk you take when you want to buy anonymously online, so be safe and careful.
2. Access to Account
Traditional money and bitcoin both have a place where you can store your money. But one never gets frozen and you have access to it all the time.
Bitcoin doesn’t have any regulations. With that said, your accounts are always accessible to you. That’s very unlike traditional money. We all hate when accounts get frozen for some reason and you need to buy something. Bitcoin eliminates that hassle. With no regulations comes other problems though, which may be worse than having some regulations on your money.
Using your bitcoin account may be much easier and hassle free. But traditional money will always have you insured through the FDIC. That’s a decision you have to make.
3. Access Worldwide – Bitcoin vs. Traditional Money
Both traditional money and bitcoin can be used daily and can be used for whatever you want. But bitcoin is the only currency, along with the other cryptocurrencies, to which the entire world can have access.
There are over two billion people that have access to a smartphone. That’s all you need when dealing with bitcoin. Traditional money needs to be converted, especially if you are traveling. This can bring you more hassle some days. Bitcoin can be used and doesn’t need a conversion. That’s because bitcoin is the money of the internet. It’s similar to how you can call someone across the world without a hiccup.
4. Uncorrelated with Other Financial Assets
Bitcoin has performed remarkably well since the coronavirus pandemic began to impact the global economy early in 2020. Its price continues to hover above $9,000. And it’s shown surprising resilience despite the ups and downs of the financial markets.
This is an important quality for Bitcoin as an alternative investment. Much like gold, it’s largely ignored the turbulence in the financial markets. In that way, Bitcoin is establishing itself as a legitimate alternative investment that has the potential to perform well when other assets are falling. That quality practically assures Bitcoin a place in your portfolio going forward.
Bitcoin can be used to buy anything online without any hassle, while traditional money may be much harder to deal with. Bitcoin and other cryptocurrencies thrive off of the internet, and it is starting to feel like they may be the currency of the future.