Abilities Of Bitcoin During Time Of Demonetization
The recent move of the government to demonetize the currency notes of RS500 and RS 1,000 has resulted in generating the digital channels of the monetary transactions. The bitcoin has become the new choice for the people along with the internet banking, credit cards, and digital wallets. The value of one bitcoin has risen by 30% after the demonetization announcement in the early days of November. There is a speculation that this could be resulted in aggressive shopping by the Indians.
Understanding of bitcoins
In simple words, a bitcoin is a virtual medium of exchange that is created and tracked online. This currency remains secured with the use of cryptography. The bitcoin is based on the blockchain technology that makes its transactions irreversible and publicly verifiable.
Competition between Bitcoins BTC and Digital Currency
Presently, there is an adequate amount of ambiguity in the terms digital and virtual, with lots of people using them interchangeably. That’s why the distinction between the Bitcoin and virtual currency can be explained that takes into account some of the main parameters.
When compared to the cash, the digital currency has much more transparency, but tracing the source of funds and other transactions can often be difficult. A higher transparency is offered by the Bitcoins with lots of historical transactions available.
In digital currency transactions, the adding of beneficiaries takes some time, whereas the transactions tend to be quick. On the other hand, the bitcoin transactions are much faster.
Chances of possible failure
There can be a chance of loss in the value of a digital currency because of the country specific and geographical issues whereas we all know that the bitcoins are decentralized and that’s why there is no chance of failure.
The majority of big countries have started to accept the bitcoin as a mode of exchange. India has become one of the largest remittance markets in the world having a total bitcoin value equaling US$ 70 billion.