Most countries are now making it hard for their citizens to trade bitcoin and the use of local currency is been stressed by most countries. For example, in Nigeria the government has ordered its giant financial institution CBN(Central Bank of Nigeria) to advice investors to use local currency instead of bitcoin when trading.
This has brought mixes reactions from the citizens. But what is the difference between Cryptocurrencies like Bitcoin and your local currency? This article will give you list of differences just read on.
MAJOR DIFFERENCES BETWEEN CRYPTO-CURRENCIES(BITCOIN) AND LOCAL CURRENCY
1. VIRTUAL AND PHYSICAL: The very first difference is the above. For one thing, our local currencies can be held, felt and spent physically but Cryptocurrencies like bitcoin are not like that. Cryptocurrencies are virtual currencies, they can’t be felt, held or spent physically. While our local currency exist in a physical format Cryptocurrencies exists only as a software or technology driven.
2. CENTRAL CONTROL: This is perhaps the most reason why government and giant financial institutions are going against Cryptocurrencies. Our local currency is owned and controlled by either the government or some financial institutions but Crypto Currency have no such central control. No one has been identified as the owner of bitcoin and its transactions can not be fully accounted for.
3. LEGALITY: Bitcoin and the other Crypto are not seen as been legal. In fact, some government see it as a giant ponzi scheme created to dupe people of their money. Some articles have surfaces online calling bitcoin investors gamblers. This means that anything can happen. And unlike our local currency that is legally recognized by the government, bitcoin and the other Crypto are not recognized by the governments.
4. REAL VALUE: Bitcoin and other Crypto lack real value. The fact still remains that the price of these Crypto is driven mainly by demand and vice versa. But local currency is not like that, our local currency have such real value that 20usd is 20usd anywhere and anytime across the globe. But 1btc might be worth $12k today and $10k tomorrow.
5. MODE OF USE: To use bitcoin and other Crypto, they have to be converted to local currency. This means that without local currency, bitcoin and other Crypto are useless. Since it’s value or use is determined by local currency, then it will be near impossible for it to replace the use of local currency as a means of payment.
The above is just some few local we thought out differences between crypto and local currency. What do you think about these differences, please leave your answers in the comments section below. Follow us on Twitter and Instagram @mntrendsblog, also like our Facebook page “Mntrends Blog” for latest updates.