Difference between Bitcoin and real money?

[savioroshan]

I've discovered Bitcoin few days ago, but I am skeptical about few things, why would I invest money in Bitcoins at the end of the day,why would I convert money into Bitcoins?

If I want to buy stocks or invest money I can easily invest with real $. Why would I convert my $ to bitcoins?
If I want to gamble , I can simply gamble on websites that require $ as currency, why would I convert it to bitcoins?
What's the difference between Bitcoins and dolars? What does bitcoin bring to the table that real $ don't, less taxes, more income?

you are right. Dollar can do everything that bitcoins can do. But the only thing why people prefer bitcoins is its anonymous. Transactions using bitcoins cannot be traced out but transactions with dollars can be easily traced out. Thats the main thing why people prefer bitcoins over dollars. Another thing is yeah some countries allow gambling and its legal. But there are many countries were its banned. people of those countries can do gambling with bitcoins because its not considered as legal money.Thats why people prefer bitcoin over dollars.

[Tyrantt]

I've discovered Bitcoin few days ago, but I am skeptical about few things, why would I invest money in Bitcoins at the end of the day,why would I convert money into Bitcoins?

If I want to buy stocks or invest money I can easily invest with real $. Why would I convert my $ to bitcoins?
If I want to gamble , I can simply gamble on websites that require $ as currency, why would I convert it to bitcoins?
What's the difference between Bitcoins and dolars? What does bitcoin bring to the table that real $ don't, less taxes, more income?

I'll answer this question simply as possible because there are many replies but mainly one of my favorite bitcoin aspects it that there cannot be inflation. Also bitcoins are bound to jump in price for more than 100% in the next year or two, can any other currency go that high? No taxes and the very transaction and storage if bitcoin is far simpler.

[Bitcotalk]

I've discovered Bitcoin few days ago, but I am skeptical about few things, why would I invest money in Bitcoins at the end of the day,why would I convert money into Bitcoins?

If I want to buy stocks or invest money I can easily invest with real $. Why would I convert my $ to bitcoins?
If I want to gamble , I can simply gamble on websites that require $ as currency, why would I convert it to bitcoins?
What's the difference between Bitcoins and dolars? What does bitcoin bring to the table that real $ don't, less taxes, more income?

I'll answer this question simply as possible because there are many replies but mainly one of my favorite bitcoin aspects it that there cannot be inflation. Also bitcoins are bound to jump in price for more than 100% in the next year or two, can any other currency go that high? No taxes and the very transaction and storage if bitcoin is far simpler.

You have right answer as you said that n any other currency can rise to 100% and that is right because no fiat can do that and even in crypto currencies I do not have saw any currency which increase that much in value. That feature is only in bitcoin.

[Sithara007]

You should not use the term "real money" in this thread. It is a relative term. "Real money" for me won't be the same as the "real money" with someone else. For example, I would consider Bitcoin as the "real money". But someone else may consider fiat as the real money.

[DRaGoN RaNTaRo]

The biggest difference in my eyes is the fixed supply, mainly because I am not totally buying the own your money thing. I mean today you own your money with btc, but no one can promise that in a couple of years we will not end up with bitcoin banks loaning people and offering interests in order for you to deposit your coins. And there goes decentralization.

Bitcoin bank is a really bad idea and no one would vouch to have a bitcoin bank to begin with.The luxury of bitcoin is to be your own bank rather than storing your coins els ewhere .To me bitcoin is real money and if you talking about fiat money then it is a different story.

[JANGKRIK BOSS]

The most obvious difference from real money and bitcoin is when we use for transacting. If we send money with real money so it takes a long process and the cost is high, but after the presence of bitcoin then everything becomes a fast, effective and cheap.

[Viscore]

The most obvious difference from real money and bitcoin is when we use for transacting. If we send money with real money so it takes a long process and the cost is high, but after the presence of bitcoin then everything becomes a fast, effective and cheap.

Bitcoin should not be compared with money, it cannot exist without money but money can still be popular without bitcoin. It is just something that gives us extra convenient doing online transaction and the fact that it can also be considered as investment, it will attract more business minded people.
But, do not forget that it will not beat real money, as we cannot live with bitcoin alone.

[IamNotAnonymous]

Satoshi Nakamoto is planning to publish the Bitcoin Deffintion Paper soon to let every body know the true nature of Bitcoin. He said that Bitcoin is not money or legal tendered currency. There is no question of legalism or illiegaism to define the nature of Bitcoin. Bitcoin is a peer-to-peer electronic cash system secured by cryptograpic proof of work. It is something defferent than money or stock. The full deffintion is coming soon from its designer and architect Satoshi Nakamoto.

[may900608]

I've discovered Bitcoin few days ago, but I am skeptical about few things, why would I invest money in Bitcoins at the end of the day,why would I convert money into Bitcoins?

If I want to buy stocks or invest money I can easily invest with real $. Why would I convert my $ to bitcoins?
If I want to gamble , I can simply gamble on websites that require $ as currency, why would I convert it to bitcoins?
What's the difference between Bitcoins and dolars? What does bitcoin bring to the table that real $ don't, less taxes, more income?

Bitcoin can be used to buy things electronically. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally.

However, bitcoin’s most important characteristic, and the thing that makes it different to conventional money, is that it is decentralized. No single institution controls the bitcoin network. This puts some people at ease, because it means that a large bank can’t control their money.

[grim007]

The most obvious difference from real money and bitcoin is when we use for transacting. If we send money with real money so it takes a long process and the cost is high, but after the presence of bitcoin then everything becomes a fast, effective and cheap.

actually there both the same in terms of transaction but i agree that bitcoin is much faster on transaction process, but the obvious difference  of that two is the anonymity of bitcoin compare to the real identification needed on real money. The legality as well is also the difference of both of them. Bitcoin is not accepted by government.

[An0nym0us]

I've discovered Bitcoin few days ago, but I am skeptical about few things, why would I invest money in Bitcoins at the end of the day,why would I convert money into Bitcoins?

If I want to buy stocks or invest money I can easily invest with real $. Why would I convert my $ to bitcoins?
If I want to gamble , I can simply gamble on websites that require $ as currency, why would I convert it to bitcoins?
What's the difference between Bitcoins and dolars? What does bitcoin bring to the table that real $ don't, less taxes, more income?

First thing bitcoin can't be compared to real money because bitcoin itself is technical stock.Unlike real money bitcoin price isn't stable and can be manipulated by big players.Any real world currency is backed by bank and have stable price butbitcoin is neither backed by any bank or govt neither is has stable price.

[bravehearth0319]

Welcome to Bitcoin and to the Forum!

The questions you're asking are great ones. However, they're also questions that you can find answers to REALLY easily on this forum or Google. I'd encourage you to do some reading here and then come up with some more specific questions.

I can help get you started with some simple answers.

Why would I invest in bitcoin? All sorts of reasons ranging from pure curiosity to love of new technology to investment diversification. Bitcoin is used as currency to buy things and as a store of value, i.e., a place to house your savings with hopes of value appreciation or hedging against the depreciation of stocks or savings held in fiat currency. One example often used is that of Cyprus. Are you familiar with the country of Cyprus and it's severe monetary crisis from a few years back? It was so bad that the Cyprus government controlled how much money their citizens could take out of their banks. Think about that. That government telling you that you can't access your very own money! How scary is that? Bitcoin offers an alternative. No government (currently) can seize control of your bitcoin, this represents safety and security.

What's the difference between bitcoin and dollars? Bitcoin isn't regulated by any government. It isn't created "out of thin air" as fiat currency is. There will only ever be a finite amount of bitcoin, which controls it's value. Once all bitcoin is mined there will be 21 million in existence, that's it. No one can ever create more (as is done every year with fiat currency). When fiat currency is created by central banks they reduce the value of the existing currency in the market, which results in inflation of prices. This is why the price of every day things (that haven't changed in 50 years, like groceries or utilities) have gone up in price over time. There's a lot of other differences, but it's better for you to read up on them.

Why would I gamble with bitcoin? I don't, but if you want to you can gamble for significantly smaller portions of money (like cents as opposed to dollars or tens of dollars). And you can do it from the convenience of your computer.

Here are a few links for you to explore:

• New To Bitcoin Thread: https://bitcointalk.org/index.php?topic=7269.0
• Why use Bitcoin? From Coindesk.com: http://www.coindesk.com/information/why-use-bitcoin/

Feel free to respond with other questions. I think you'll get better response if you educate yourself a bit first and then come back with more specific questions.

Have you bought any bitcoin yet? Do you have a wallet yet? (If you don't, PM me and I'll set you up and give you some bitcoin)

Good luck to you!

As I read the statement of yours it was very informative, anyone who can read it will be amazed and thankful to you. You are one of the good community here i this forum. All I can say about in Bitcoin, is very unique, I never see a digital currency like this that can produce freedom to anyone and to resolve the common financials problem unlike in money/cash very far to bitcoin.

[grandy]

The most obvious difference from real money and bitcoin is when we use for transacting. If we send money with real money so it takes a long process and the cost is high, but after the presence of bitcoin then everything becomes a fast, effective and cheap.

i think it is the difference between the procedure of sending money. i think the real difference between the two currencies is that one is digital currency while the other is real and fiat currency. bitcoin is decentralize having same value everywhere and not under control of anyone while fat is centralize and always under the control of the state.

[Dudeperfect]

The most obvious difference from real money and bitcoin is when we use for transacting. If we send money with real money so it takes a long process and the cost is high, but after the presence of bitcoin then everything becomes a fast, effective and cheap.

i think it is the difference between the procedure of sending money. i think the real difference between the two currencies is that one is digital currency while the other is real and fiat currency. bitcoin is decentralize having same value everywhere and not under control of anyone while fat is centralize and always under the control of the state.

The speed of transaction and the fees are crucial characteristics of bitcoin which makes it different from fiat currencies. On the international level, bitcoin is far better than fiat in terms of cost and speed of transaction. Since bitcoin is free from any third party interference, there is less risk of dependability on someone in order to spend or receive our funds and that’s really big difference between them.

[Japinat]

The most obvious difference from real money and bitcoin is when we use for transacting. If we send money with real money so it takes a long process and the cost is high, but after the presence of bitcoin then everything becomes a fast, effective and cheap.

i think it is the difference between the procedure of sending money. i think the real difference between the two currencies is that one is digital currency while the other is real and fiat currency. bitcoin is decentralize having same value everywhere and not under control of anyone while fat is centralize and always under the control of the state.

The speed of transaction and the fees are crucial characteristics of bitcoin which makes it different from fiat currencies. On the international level, bitcoin is far better than fiat in terms of cost and speed of transaction. Since bitcoin is free from any third party interference, there is less risk of dependability on someone in order to spend or receive our funds and that’s really big difference between them.

That's true, I have tried transferring money using internal bank transfer, but it takes 3 days to clear the transactions, in bitcoin I never experience that long, I just need to wait for minutes and the sender receive my transfer.

Moreover, banks does has not public ledger where we can easily trace the update of our transactions, and we just have to make follow with them with the status. What is stated here is only the disadvantage of banks and advantage of bitcoin but in general, despite of that, we are still force to use the service of the bank.

[azguard]

Satoshi Nakamoto is planning to publish the Bitcoin Deffintion Paper soon to let every body know the true nature of Bitcoin. He said that Bitcoin is not money or legal tendered currency. There is no question of legalism or illiegaism to define the nature of Bitcoin. Bitcoin is a peer-to-peer electronic cash system secured by cryptograpic proof of work. It is something defferent than money or stock. The full deffintion is coming soon from its designer and architect Satoshi Nakamoto.

Well can you be little specific where did you get this information and can you provide some link or links if there are more about this information. It would be good for all members here to see this and to read little more about it if that is not problem for you.

[Dudeperfect]

The most obvious difference from real money and bitcoin is when we use for transacting. If we send money with real money so it takes a long process and the cost is high, but after the presence of bitcoin then everything becomes a fast, effective and cheap.

i think it is the difference between the procedure of sending money. i think the real difference between the two currencies is that one is digital currency while the other is real and fiat currency. bitcoin is decentralize having same value everywhere and not under control of anyone while fat is centralize and always under the control of the state.

The speed of transaction and the fees are crucial characteristics of bitcoin which makes it different from fiat currencies. On the international level, bitcoin is far better than fiat in terms of cost and speed of transaction. Since bitcoin is free from any third party interference, there is less risk of dependability on someone in order to spend or receive our funds and that’s really big difference between them.

That's true, I have tried transferring money using internal bank transfer, but it takes 3 days to clear the transactions, in bitcoin I never experience that long, I just need to wait for minutes and the sender receive my transfer.

Moreover, banks does has not public ledger where we can easily trace the update of our transactions, and we just have to make follow with them with the status. What is stated here is only the disadvantage of banks and advantage of bitcoin but in general, despite of that, we are still force to use the service of the bank.

The fees required by banks are almost near to some of my digital goods so using the bank for the transaction was never my favourite option whereas there are still many restrictions on using PayPal in my country so it makes us pay some extra fees to receive payments. Bitcoin is proving as healthy and cheaper option as a local transaction so today I prefer using bitcoin than any other option, at least on the international level.

[South Park]

The way the question is framed is already a mistake, Bitcoin is real money, in fact bitcoin is better on performing the job of money than any fiat in circulation because it is money that has all of the characteristics you will expect of the currencies of the world and also is a store of value, while the price of bitcoin oscillates the truth is that anyone with an ounce of intelligence would have profit from the price changes.

[artows21]

Bitcoin is virtual money and doesn't have the same value of money

[Maskedman]

Bitcoin is virtual money and doesn't have the same value of money

But isn't this paradoxal ? You are saying that Bitcoin is virtual money, so you are assuming that Bitcoin is money. I think he thought most about the Bitcoin/fiat difference, and in this case, fiat is state-produced while Bitcoin is created by a consensus.