Bitcoin vs. Conventional currencies

1. Bitcoin is Decentralized

Unlike traditional currency, which is controlled by a central authority -­ usually an arm of the
government -­ Bitcoin is decentralized. Because it operates as a peer-­to-­peer network, all
transactions and verification of transactions are done by various people in the network.

2. Bitcoin is Virtual Currency

The other thing that sets Bitcoin apart from traditional currency is the fact that it's virtual. That
is to say coins and paper money aren't produced to represent the value. Instead, all bitcoins
exist in virtual space. This means you can't go to an ATM and withdraw physical money. Some
people have created unofficial physical representations of bitcoins, but first and foremost,
Bitcoin is virtual.

3. Bitcoin has Scarcity

Because only 21 million bitcoins will be created, BTC has scarcity, unlike traditional currency
that can be printed when governments decide to print more. To spread out the creation of
bitcoins being released into the world, the number that are created by "mining" will half every
four years. This means that people will still be able to create them until the year 2140. At that
time, no new bitcoins will be created and the existing stockpile will enjoy the benefits of
scarcity -­ i.e. becoming more valuable.

4. Bitcoin transactions cannot be reversed

In order to preserve the block chain of all transactions in sequential order, Bitcoin transactions
are not reversible. Additionally, a Bitcoin transaction can take ten minutes or more to confirm.
This is different than other currencies that typically process transactions in seconds and also
allow for reversing a charge to a credit or debit card.

5. Bitcoin is not Ubiquitous

Wherever you go in the world, you're going to run into local currencies. In most places, you'll
be able to trade your country's money for bills of the country you're visiting. And no matter
where you go in the world, you're going to be able to trade your money for goods and
services. Bitcoin hasn't yet been embraced by the world at large. This may change in years to
come as more businesses begin to accept Bitcoin for payment, but for now it's a difference
that matters to a lot of people.