how is a cryptocurrency like bitcoin

How is a Cryptocurrency like Bitcoin Different from Traditional Money?

Coinsaga: A cryptocurrency is a digital form of money that can be sent anywhere in the world without the need for a central authority such as a bank.

As money becomes more and more digital, there has been a lot of buzz around cryptocurrencies. Let`s take a look at what cryptocurrency is, and how it differs from traditional money.

Before we get into the benefits of cryptocurrency over traditional money, lets quickly review what “Money” actually is. Very simply, money is a medium of exchange that allows people to buy what they need to live.

There are 2 different forms of money:

Traditional or fiat currencies – This is the money we all use each day and includes currencies such as the dollar, euro, and pound. These currencies are issued by governments and gain their value from being legal tender in the country/countries they originate. They have no intrinsic value unlike a commodity such as gold or silver.

Commodity money – Gets its value from its own worth, for example, if it is made of or backed by precious metals (e.g. gold and silver), rock, salt, or even shells.

What Is Cryptocurrency?

Cryptocurrencies are a digital form of money that can be exchanged between two parties online. A cryptocurrency is not issued by a central bank or government, but is accepted by people and merchants as a means of payment for goods or services.

There are currently more than 900 cryptocurrencies, with Bitcoin, Ripple, Ethereum, and Litecoin the most well-known and used.

While fiat money is subject to inflation and central banks can print more at any time, the leading cryptocurrency Bitcoin has a fixed supply of 21.000.000 units, making it even rarer than gold.

Traditional money affords users complete anonymity. However, every time you swipe your credit or debit card, your personal information is attached, and businesses, banks, and governments can use this data to track your activities. Cryptocurrency transactions carry no personal information (unless you add it yourself). This privacy also dramatically decreases the chances of identity theft.

Traditional bank accounts can be seized or frozen at any time, but since digital currency exists outside government regulations and laws that allow this to happen, it is very unlikely that you will ever be unable to access your cryptocurrency funds.

Individual cryptocurrencies are digital and cannot be counterfeited or reversed arbitrarily by the sender, as with credit card charge-backs

Traditional banks charge fees to process transactions. With digital currency being exchanged over the internet, there are usually no or very small transaction fees.

Access to everyone. There are around 2.2 billion people with access to the Internet or smartphones who don`t have access to a traditional bank account. For these people, cryptocurrencies are perfect. With this said, one in three Kenyans now own a Bitcoin wallet, which is huge!

Otherwise, there is no intrinsic difference. Both fiat currency and cryptocurrency can be called money or currency, both are mediums of exchange that are used to store and transfer value, both can be used to purchases goods and services, both have their value governed by supply, demand, work, scarcity, and other economic factors, both have their value affected by the quality of the system surrounding it, and both can be traded on exchanges.

Coinsaga: Now Offering Cryptocurrency Payment Processing

Cryptocurrency has created a new form of trust for our future global monetary system. The system behind Bitcoin is completely transparent and based on algorithms and the consensus of the everyday user. Keeping all this in mind, which is a better option for your gaming experience? Cryptocurrency or traditional money?

Here at Coinsaga, we strive to provide the latest technologies including cryptocurrency in order to provide the ultimate gaming environment for our players. We are proud to be one of the first casinos to offer players the ability to play in Bitcoin, Ether, and Litecoin.

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