Tag Archives: Distributed ledger

USD vs BITCOIN ? Which is Better?

Starting with history of why Bitcoin ( cryptocurrency) we’re created, Bitcoin was created with a view that FIAT currencies should be replaced by one currency which universally accepted.

When we compare this concept with actual FIAT currency ( USD), we can see that Bitcoin solves many problems we are having with USD.

Firstly SUPPLY

SO, supply is printing of notes which wholly in control of central bank of the country or the government. Government or central bank prints currency as per their convinience to stabilisation inflation or deflation. Hence, the supply of currency can be unlimited. However in BITCOIN supply is limited. This eliminates the power to increase or decrease supply hence your currency wont be depreciated.

Second is DEFI

DEFI is decentralised financing. This is basically related to blockchain technology. In layman’s term, whenever you transact through bank account there is a centralised ledger kept for records by banks known as BANK STATEMENT, in case of BITCOIN, the ledger or records are distributed so no one watch or record the transaction which has significant impact on INCOME TAX LAWS. ( this will be discussed later in next blog)

Third is Denominations,

USD is available in notes as well as coins which can be used. Lly, in case of BITCOIN it is divisible up to 8th decimal.

There are many other differences as well but they are insignificant while you are looking for an investment in crypto.

How Crypto is helping terrorism?

To understand how crypto is helping terrorism or illegal activities first you need to know what a blockchain is.

BLOCKCHAIN

So, Crypto functions on blockchain technology. In layman’s language Blockchain is chain of computers or servers (Blocks) which routes your transaction through it so that no one can find out the root of transaction.

Also, as in banks there are ledgers of every customer which is BANK STATEMENT, which shows details of all transaction. However in crypto currencies, due to blockchain, the ledger is distributed. No centralised system is there to record these transaction.

How it is helping terrorism?

Due to this, illegal transaction including money laundering, Hawala, foreign transfers, etc. are increasing day by day as no one can trace the root of transactions. This is benefitting terrorist activities as they are receiving money from the masterminds and these masterminds are untraceable.

Stay tuned for more facts related to Crypto..