Bitcoin may be the first cryptocurrency to have made its presence felt in the crypto world but it is one of many crypto coins, and there are some basic differences between the Bitcoin and other crypto coins. Bitcoin runs on an encryption technique but it is neither issued nor regulated by a centralized institution like a bank. It was launched in 2009 by an individual or group called Satoshi Nakamoto. Bitcoin uses crypto technology, and unlike fiat currencies, is not controlled by a government agency. Cryptocurrency, on the other hand, is the technology acting as a medium to enable financial transactions that are secure and hassle-free.
The main idea behind creating the Bitcoin was to accelerate cross-border transaction speeds and reduce government’s control over these. The process was to be streamlined and simplified without the need for third party intermediaries. Costs of transactions could be lowered only because there are no middle men involved. But in Bitcoin, the focus today is more on soundness and stability. As a result, privacy can also get compromised at times. Bitcoin is being viewed as digital gold and attempts are being made to make it a global and store of value. So, the Bitcoin community has somewhat drifted from its crypto-anarchist roots. According to experts, the view that most Bitcoin people hold today is that they have not stopped being concerned about fungibility or privacy but they view it more as a new technology experiment that cannot fail or rather should never fail. This seems to have become the number one priority. The world will perhaps not get another such opportunity to promote a decentralized currency if the Bitcoin fails.
- One of the key differences between the Bitcoin and other crypto coins is that Bitcoin was meant to facilitate secure and faster transactions without government controls. The objective behind other cryptocurrencies was to provide low-cost transactions that are secure.
- Any crypto coin that has been launched as an autonomous digital coin is legal and guarantees to pay values that come encrypted in it. But the Bitcoin does not have any such value because it is a digital private currency.
- Bitcoin currency can only be limited to trading, but other crypto coins are also used for this purpose.
- Bitcoin may be the most popular digital currency yet since it made its debut; while others have followed in its footsteps, they have not been able to match Bitcoin’s popularity.
- Bitcoin lowers costs of influencers and it can reduce time taken for transactions to be verified, but it is less flexible. Cryptocurrencies aim at exchanging goods and services in a secure environment with almost zero or little government controls and middlemen involvement.
- Bitcoin tries to be anonymous and while we can view the amount of transactions, we cannot view the identity of the senders or recipients. They appear as meaningless numbers without any specific sequence. Many crypto coins that followed the Bitcoin are sticking to more transparency in their transactions making them fit for being used in different industries.
- Finally, Bitcoin being the first of its kind, enjoys an obvious head start over other cryptocurrencies. Because of intense competition these cryptocurrencies are continuously improving not only themselves but also their technologies. This has automatically led to much innovation and better security measures.