Question

What is BITCOIN? Is it the same as Cryptocurrency?

Answer 1

Bitcoin is the digital currency that utilizes cryptocurrency and it is controlled by the decentralized authority which is not like the government-issued currencies whereas the Cryptocurrency refers to the technology that acts as a medium for facilitating the conduct of the different financial transactions.

1. Cryptocurrency is an internet-based medium of exchange which uses cryptographical functions to conduct financial transactions. Cryptocurrencies leverage block chain technology to gain decentralization, transparency, and immutability.
2. The most important feature of a cryptocurrency is that it is not controlled by any central authority: the decentralized nature of the block chain makes cryptocurrencies theoretically immune to the old ways of government control and interference.
3. Cryptocurrencies can be sent directly between two parties via the use of private and public keys. These transfers can be done with minimal processing fees, allowing users to avoid the steep fees charged by traditional financial institutions.

Basis for comparison between Bitcoin vs Cryptocurrency	Bitcoin	Cryptocurrency
Main Aim	To simplify and increase the speed of transactions without much of government restrictions.	To provide low cost, safe and secure transactions.
Trade	Bitcoin is limited to trading by using it as a currency.	There are a lot of cryptocurrencies which are used for trading as well.
Popularity	Bitcoin is the most popular bitcoin.	The number of cryptocurrencies has increased but their share is still less than Bitcoin.
Strategy	Bitcoin focuses on lowering the cost of influencers and reduce the time of transactions but is less flexible,	Cryptocurrency aims at the exchange of goods and services is a safe and secure environment with very little or no government and middleman interference.
Status	Bitcoin likes to be anonymous and hence even though we can see their transactions in the ledger, they are meaningless numbers which are not in any particular sequence.	A lot of cryptocurrencies that came recently are following transparency in their transactions and hence they are able to work with a lot of other industries.

Bitcoin being the first cryptocurrency has a head start over other cryptocurrency technologies. Since then a lot of cryptocurrencies have come and some are even specializing in few sectors.

The most important thing is competition. Due to heavy competition, cryptocurrencies are continually improving themselves and the technologies that they are using. This paves the way for a lot of innovation and improved performance and security measures.

Bitcoin may have had a greater chunk of share in the sector initially. But with the introduction of new cryptocurrencies and sophisticated & transparent technologies, the gap is diminishing as every day passes. Soon, this market will also become more dispersed with the cryptocurrency that provides the maximum value being at the top.