Bitcoin vs. Cryptocurrency

Publication Date :

13 Jul, 2018

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Table Of Contents

Bitcoin vs. Cryptocurrency Differences

We have reached the dawn of a new era where we now have a global currency that helps businesses worldwide make transactions safely and securely with little transaction costs and time.

Surely, bitcoin and cryptocurrency differences would have remained a dream if we considered developing a traditional currency that would do the above things in this global economy.

By introducing digital currency/cryptocurrency, we can even think of such a possibility. The introduction of a common digital currency that one can use to make transactions without the interference of strict government regulations, and the banking intermediaries make the transaction days complete with huge transaction charges. Therefore, it is a huge blessing for companies that rely on international transactions.

Bitcoin vs. Cryptocurrency Differences

Bitcoin vs Cryptocurrency Infographics

Here, we provide you with the top 5 differences between bitcoin and cryptocurrency technologies.

Video Explaining of Cryptocurrency

What do you mean by Bitcoin Technology?

Bitcoin is the first-ever cryptocurrency that Satoshi Nakamoto founded in 2008. It started as open-source software to transfer money.

Bitcoin is a digital currency that can also be called a cryptocurrency. It was mainly created to speed up cross-border transactions, reduce the government’s control over the trade and simplify the process without third-party intermediaries. Not having intermediaries has brought down the transaction costs significantly.

Bitcoin is not a formally accepted payment medium in all countries, but people worldwide utilize it for various transactions. As it is not physically present, it would be very safe and secure, and one of the best ways to do that is by using blockchain.

Blockchain is a distributed ledger that provides a low-cost, safe, secure environment for peer-to-peer transactions. In addition, it gives the information to the public so that anyone can access and view the financial transaction that has been executed.

What do you mean by Cryptocurrency Technology?

Cryptocurrency is the technology that acts as the medium for conducting financial transactions.

From the creation of units to the final verification of the transaction being made, cryptocurrency provides a safe and secure platform for transactions with the help of cryptography technology.

Cryptocurrency is a virtual digital currency. It does not have a physical form. It works on decentralized control, which does not have central banking systems. As a result, this makes it easier for cryptocurrencies to work with distributed ledgers.

With distributed ledgers that provide peer-to-peer transactions and the transparency of transaction details to the public, cryptocurrency technologies have become a force to be recognized worldwide.

Initially, one would only use it for digital transactions, but now it is used to trade almost anything online. It has become a huge success that many companies worldwide are using them.

Some top-level companies invest big money to simplify the process with advanced safety and security measures, thereby helping the cryptocurrency develop at an astonishing rate.

Bitcoin vs Cryptocurrency Head-to-Head-Differences

Now, let us look at the head-to-head differences between bitcoin and cryptocurrency technologies: -

The basis for comparison between Bitcoin vs. Cryptocurrency	Bitcoin	Cryptocurrency
Main Aim	To simplify and increase the speed of transactions without numerous government restrictions.	To provide low-cost, safe, and secure transactions.
Trade	Bitcoin is limited to trading by using it as a currency.	There are a lot of cryptocurrencies that are used for trading as well.
Popularity	Bitcoin is the most popular bitcoin.	The number of cryptocurrencies has increased, but their share is still less than bitcoin.
Strategy	Bitcoin focuses on lowering the cost of influencers and reducing the time of transactions, but it is less flexible.	Cryptocurrency aims to exchange goods and services in a safe and secure environment with little government and middleman interference.
Status	Bitcoin likes to be anonymous. Hence, even though we can view their transactions in the ledger, they are meaningless numbers that are not in any particular sequence.	Many cryptocurrencies that came recently are following transparency in their dealings. Hence, they can work with many other industries.

Bitcoin vs Cryptocurrency - Conclusion

Bitcoin has a head start over other cryptocurrency technologies as the first cryptocurrency. Since then, many cryptocurrencies have come, and some specialize in a few sectors.

The most important thing is competition. Due to heavy competition, cryptocurrencies are continually improving themselves and the technologies that they are using. It paves the way for innovation and improved performance and security measures.

Bitcoin may have had a greater chunk of share in the sector initially. But with the introduction of new cryptocurrencies and sophisticated and transparent technologies, the gap is diminishing as every day passes. Soon, this market will also become more dispersed, with the cryptocurrency that provides the maximum value being at the top.