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Difference of Bitcoin from traditional currencies

The relationship between Bitcoin and traditional currencies is a complex one. Bitcoin seeks to undermine the traditional way of dealing with money, so Bitcoin vs traditional money is a natural opposition.

The difference of Bitcoin from traditional currencies lies in the fact that Bitcoin is not controlled by anyone as it is decentralized. Bitcoin also strives to bring down the cost of using the system by ideally eliminating fees and transaction times, both of which banks need to stay in business.

Of all the differences between Bitcoin and the traditional banking, what most stands out is that Bitcoin does not rely on any authorities to trade. Instead, it relies on the combined computing power of network participants, each of which is equal among themselves - nobody is more or less important than the others.

When asking how is Bitcoin different from the dollar, most people will tell you that it is because Bitcoin is not backed by anything. This is not entirely true: while Bitcoin indeed has nothing physical to back it, neither does the dollar. Historically speaking, up until 1971, most currencies were backed by a commodity, usually gold or silver. This is not the case anymore.

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