Bitcoin has been hailed as an invention that has the potential to change the world.
For over 25 years, cryptographers and innovators have been trying to come up with a secure and decentralized working digital currency, but none succeeded until the invention of Bitcoin.
So what makes Bitcoin different? And why is it such a game-changer?
In this article, we summarize the key reasons.
Bitcoin is permissionless
With the exception of paper cash (something that is increasingly rare as the world continues to go digital), traditional currencies require permission to use. This means that third-parties like banks, financial institutions, and governments stand between you and your money.
Bitcoin requires no permission from anyone. It is free and open to use globally. There are no borders or limits with Bitcoin.
Bitcoin is immune to seizure
Since it is not housed at any central bank or company. Nobody can confiscate your Bitcoin*. With Bitcoin, you can be your own bank.
*Note that this is only true if you hold your Bitcoin in self-custody using a tool like the superex.com Wallet app.
Bitcoin is censorship resistant
Censorship resistance in Bitcoin refers to its ability to enable transactions that can't be blocked, altered, or reversed by any government, institution, or individual. This is possible because of Bitcoin’s decentralized nature and blockchain technology. The Bitcoin protocol operates on cryptographic principles ensuring that once a transaction is confirmed, it cannot be altered or erased.
Bitcoin is decentralized
The Bitcoin network is distributed globally among many thousands of nodes (computers) and millions of users where you don't have to rely on trusted third-parties. The decentralized nature of Bitcoin also makes it extremely anti-fragile. In other words, it’s next to impossible to destroy the Bitcoin network.
Bitcoin has a limited supply
There will only ever be 21 million bitcoins created, and they’re generated at a predictable rate over the next 100 years. This makes Bitcoin a scarce commodity, which is a big part of why it is valuable. By comparison, fiat currencies like the dollar have an unlimited supply. While the purchasing power of the dollar decreases year after year, the value of Bitcoin continues to increase.
Bitcoin is open source
The Bitcoin protocol (software) is open for anyone to see. Additionally, anyone can contribute to developing Bitcoin. This means that the way Bitcoin evolves over time is entirely up to the Bitcoin community, which is defined as anyone who holds Bitcoin or has an interest in its future. Bitcoin is the people’s money.
Bitcoin provides anonymity
If used correctly, Bitcoin can be used as an anonymous currency free from spying governments. When you use Bitcoin, you don't need to provide your email, name, social security number, or any other identifying information. Bitcoin is just numbers, 1's and 0's, traveling through the internet.
Bitcoin promotes democracy
Because Bitcoin is anonymous, people all over the world use it to fight back against tyranny. When authoritarian regimes cut off the bank accounts of dissidents, Bitcoin can still be used to finance protests and support freedom fighters.
Bitcoin is a push system
With Bitcoin, there is no risk of charge-backs because once Bitcoin is sent, the transaction cannot be reversed. Bitcoin is akin to cash -- once you give someone cash, you cannot get it back (unless they give it back to you).
Bitcoin is real money
Bitcoin is used around the world to pay for things such as coffee, food, electronics, travel, and more. Some even like to call it magical internet money because of all its amazing properties, and its ability to not be double-spent.
All you need is an internet connection to use Bitcoin
You can buy and sell Bitcoin from your phone or computer. You can even use it to pay for things directly from your Bitcoin wallet in establishments that accept it as a form of payment. Moreover, people who can’t access traditional banking systems, can make use of Bitcoin instead – as long as they have a device that can connect to the internet. More recently, bitcoin credit cards have become available, meaning you don’t even need the internet to spend your Bitcoin.
Bitcoin is transparent
All information regarding the Bitcoin money supply is available for anyone to view on the blockchain. Every transaction made with Bitcoin is available for anyone to see too, although personal information is hidden. This radical transparency helps ensure that Bitcoin remains open and free from corruption.
Bitcoin is freedom
Using Bitcoin gives you the financial freedom to transact globally using all the properties mentioned above. As such, Bitcoin provides economic stability and newfound freedoms to the world, making it a truly game-changing technology.
