Getting befuddled between Diem and Bitcoin is a dime a dozen for many. If you are also one of those from the list getting confused, don’t worry as this blog post gets you covered. We’ll unmask the key differences between the two. Additionally, this piece also covers the fundamental reasons that make Diem supersede Bitcoin in the race. Keep reading!
Flashing on some well-known cryptocurrencies like Ethereum, Litecoin, and Bitcoin-to name a few, these have held their paramount positions for over a decade now. The incessant advancements in technologies have also immensely impacted the growth of these virtual currencies, with more and more novices persistently hitting the market. In simpler words, their emergence has somewhat become quite ubiquitous in this contemporary era. But their contribution in reshaping the global digital economy cannot be simply rolled out. Cryptocurrencies have largely become the talk of the town due to their advantages of furnishing massive shielding against identity thefts and lower transaction fees.
In continuation, the popularity of the so-called decentralized money is relentlessly surging with each passing day. With over 5,000 cryptocurrencies presently in existence to date and congregating countries being in the constant race to develop their own, the coming era is likely to be dominated by internet money.
Which is the most awaited cryptocurrency?
The moniker “Diem” has been part of the headlines for quite some time. Therefore, those who always stay tuned to the news related to cryptocurrencies are eagerly waiting for its official launch. Albeit, the hold-back time has surpassed a lot, the rumored inauguration is anticipated this year only: 2021. So, till this hanging fire gets over, the wait is the only option for many.
Here is a piece of intriguing news for those who are some or other way connected to this virtual currency; Diem being quite a fair and square is poised to become one of the most acclaimed cryptocurrencies throughout the globe within a short span. This is a claim that’s given by the Diem Association who proudly extols its virtues. The independent corporation also intends to reach the 1.7 billion people that remained unbanked globally through the bracing of the Diem coin.
Well, unquestionably, for some it’s hard to believe these affirmations and may give them the title of “bragging”. However, if you see the mammoth user base of Facebook (including WhatsApp, Messenger, Instagram, and others), such assurances by the Association can be seen eye to eye by those whose arms weren’t twisted previously.
What’s the mission of Diem?
Formerly tagged as Libra, at the onset, the Diem project was overseen by the famous conglomerate Facebook. Throwing illumination on its goals, it aims at creating a new payment system by instigating a stablecoin in the shape of Diem. Additionally, it ponders to deliver a platform wherein individuals are empowered to readily trade and exchange money. Plus, Diem is acclaimed to be quite authentic, it essentially guarantees transparency. This otherwise heralds the fact that nothing shall be concealed from the users!
Briefly talking about the team; the Diem federation is a maverick organization constituting 27 members, including corporates, nonprofits, and VCs. Not to miss; Facebook, Spotify, Coinbase, PayU, Shopify, Uber, Lyft, and Checkout.com-are some of the other conspicuous ones.
What makes Diem better than Bitcoin?
Rather than further digressing from the topic, let’s get back to the title of the topic “why Diem overrides Bitcoin”. Well, the below pointers are likely to clear your queries!
When compared with its counterpart Bitcoin, Diem is considered to be a stablecoin. This is because; it is directly associated with the US dollar. It fundamentally bespeaks that 1 Diem holds the same value as 1 US dollar. Not just this, but in the future, Diem is likely to be connected to other currencies too like the European Euro or the British pound-for instance. However, it’s still anticipated and the Diem Association is yet to set the seal on this particular news.
On the flip side, Bitcoin isn’t linked to any form of physical currency. Consequently, its value could rise or fall tremendously, irrespective of the price of other currencies. This rapid surge or pruning is commonly termed-Volatility.
Diem being a stablecoin is expected to be a non-volatile currency; whilst a Bitcoin could experience substantial volatile values.
- Diem Association has a complete control
Bitcoin is decentralized, which is one of its most laudable aspects. This zeroes in on the fact that it isn’t affiliated to a single person, company, or any association. One of the appreciated perks of a decentralized approach is its capacity to mask a user’s identity. What’s more, such a modality paves way for seamless transactions ditching any sort of inconsistencies.
However, along with the advantages, it’s also vital to share the existing flaws too. As per the data of America’s daily newspaper New York Times, over 18.5 million Bitcoins are lost due to users losing their keys.
Fortunately, such blemishes are not envisioned during a centralized procedure. Diem platform provides its database a considerable degree of control over the currency. Plus, it also proffers services to retrieve any lost coins in the process.
- Diems are boundless
Did you know? When Satoshi Nakamoto launched Bitcoin, he had put a cap on the limit of this cryptocurrency. As a result, the present maximum allows the existence of 21 million Bitcoin. This value cannot ever be crossed, as per the present rules and regulations.
Howbeit, Diem is backed by the US dollar, which we all know is a fiat currency. Such currencies aren’t linked to finite resources. Therefore, there isn’t a maximum/minimum criterion with Diem. To put it simply, its circulation is boundless.
- The Diem system is easy to comprehend
One of the significant reasons for individuals to head over heels with the Diem system is that it can be comprehended with ease. You don’t have to be a tech-savvy person to understand its concepts. The transfer of money can be executed rather simply.
The decentralized approach of Bitcoin is a bit convoluted, sometimes making it obscure for the users. A neophyte person dealing with it perhaps needs to put a lot of effort to get accustomed to its intricate system.
To wrap up
Looking at the above, it’s crystal clear that there is a huge difference between Diem and Bitcoin. Choosing one amongst them is a completely personal choice.
But one thing stands firm; when Diem officially rolls out, it is likely to rattle the existing market by fulfilling all its so-called till now rumored claims.
And for further headlines on Diem, stay tuned to our blog section that is incessantly updated by a team of aficionados.