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As many of us already know, it is easier for the average person to learn about difficult concepts using analogies since they help in better illustrating a particular point . The same logic applies really well to the topic of Bitcoin, since there seems to be a lot of confusion regarding this digital offering.
Crypto Analogies And Metaphors About Bitcoin
So without any further ado, let's get started.
Bitcoin Can Be Thought Of As Digital Cash
One of the most common ways of describing Bitcoin is by comparing the digital asset to regular cash. Since Bitcoin fulfills many of the core criterion of regular fiat currencies (such as p2p transactions), it can be used to facilitate payments in quite the same way.
However, the core difference between cash payments and Bitcoin transactions is that the latter is anonymous and irreversible. Not only that, BTC tokens if lost or destroyed can never be recovered, nor can one be sure that oneâs assets will be returned if you lend them out to a third-party user.
With that being said, there are many advantages that Bitcoin currently holds over cash. Some of the core advantages of BTC in this regard include:
- Digital: The currency is completely digital and thus can be used to send, receive money quite easily.
- No Economic Restrictions: Unlike bank based transfers that require users to send a minimum sum of money to the other party, BTC transactions can be facilitated for any amount that may be required.
- Instant: While international payments facilitated through conventional banking institutions can take anywhere between 2-5 days to complete, BTC allows for cross-border transactions to be verified within a matter of minutes.
Bitcoin Can Be Compared To Emails
Another useful comparison that can illustrate the overall usability of Bitcoin is that of an email. This is because, quite like an email, BTC can be sent to/from any device connected to the internet. Additionally, the transaction is almost instantaneous and can be carried out at almost little to no cost.
With that out there, it is important to understand that Bitcoin operates in a much more sophisticated manner than your regular email system. For example, emails function through the use of a centralized network, wherein all of oneâs data is stored on localized servers belonging to firms like Yahoo, Google, Microsoft. However, with Bitcoin, there is no one authority that oversees all of our data. Instead, BTC makes use of an open system where there is no single owner and you do not have toâ ask anyone for permission to obtain an account, nor is there any approval processâ.
Bitcoin = Digital Gold
Bitcoin cannot be transformed into another financial commodity quite like Gold can never be transformed into any other physical element (other that itself).
Also, both of the aforementioned entities are scarce by definition and need to be extracted from scratch.
Bitcoin Serves As A Personal Banking System
When making use of Bitcoin, you have the power to send/receive and store money in a manner that is not only easy, but also highly privacy oriented. If that wasn't enough, BTC users can also easily access their balance ledgers and transaction histories at any given time (this is in direct opposition to the services provided by regular banks where customers can only carry out operations from Monday to Friday during fixed working hours).
Another point that should be mentioned at this point is that Bitcoin is not like an enterprise that lends money deposited by its customers. As a result of this, Bitcoin has no debts, obligations or negative balances.
Lastly, unlike conventional banking institutions that maintain accounting books (whether physical or digitized) of all their records, bitcoin has the capacity to anonymously note down transactions in a transparent fashion. All of these operations are visible to everyone that is part of the network (and can be consulted without permission). The blockchain ledger is updated and synchronized automatically in real time without the need of any third party authority.
Bitcoin Is Like Water
In a certain sense, the Bitcoin network is designed in a way such that it is always flowing. To further elaborate on this point, we can see that if the currencyâs native network is obstructed in any way, the transactions are able to source new channels to complete the required transfer of data.
To put it in the simplest terms possible, the Bitcoin ecosystem is completely independent and can function irrespective of any political directives that may be implemented at any given time across the globe.
Bitcoin Can Always Be Used As An Insurance Policy
If for any reason, the global financial markets start to crash (which they inevitably will), Bitcoin will serve as an excellent store of value since it is not susceptible to the monetary policies of any country or to the vulnerabilities of the existing financial system in place all over the world.
Bitcoin Is Like Dustin Hoffman From âRainmanâ
One quick look at BTCâs native network efficiency and we can see that the currency offers its customers with the largest and safest computer network on the planet.
Bitcoin Is Similar To Oil
As we all may know, crude oil serves as the foundation for a host of chemicals and pharmaceuticals. Similarly, bitcoin is also the industrial basis for a host of derivatives that can be built atop this technology (payment systems, trading platforms etc).
Bitcoin Promises A Perfect Government System
Since the BTC network has been designed using a public consensus framework, it is always governed by the will of its participants. For example, the factual correctness of all its records are protected by the system itself and the results are open to audit at all times.
Bitcoin Provides Users With Full Freedom Of Expression
Each transaction facilitated via Bitcoin can include a text message that cannot be censored, modified or deleted by anyone (even though it may offend some people).
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.