Bitcoin Vs. Fiat Currencies: 5 Advantages You Should Know

As we slowly transition into a new era of digital currencies, it’s important to stay on top of the latest industry trends. Although Bitcoin is by no means a widely-accepted form of payment as of yet, everything seems to be pointing towards cashless spending that’s gradually getting a foothold in today’s economy.

Compared to traditional fiat currencies, Bitcoin comes with several advantages:

1. Decentralization

Unlike what is the case with fiat currencies, there is no central authority or financial institution that can control it. Any Bitcoin-related transactions take place on the blockchain, so the government has no say in the process. At any point in time, the holder of this cryptocurrency can make the decision to sell it, buy more, or hold onto it. Whereas with traditional fiat currencies, the bank could freeze your funds on the grounds of suspicion there is some form or illicit activity going on. Furthermore, if you attempt to wire a large sum of money, the bank could start asking some questions. With Bitcoin, you’ll experience none of these problems, thus making it the more flexible choice when it comes to your finances.

2. Cannot be falsified

Although there are several anti-counterfeiting measures in place in regard to printed money, the possibility for scammers to get away with fraud is still there. Bitcoin, on the other hand, is a digital currency and none have succeeded with faking it as of yet. The reason being is, Bitcoin runs on blockchain technology which stores the details of every transaction on a public ledger. It is impossible to bypass the mechanism, and the record of any purchase made is forever stored inside. In other words, it’s impossible to tamper with it even if you tried.

3. Ease of global transactions

If you’ve ever attempted to wire money overseas, you’re well acquainted with the obstacles you’re likely to experience. The larger the sum, the greater the likelihood of the bank blocking the transaction or holding your funds. But Bitcoin knows no borders. Wherever there is an internet connection, you’ll be able to access your funds in every corner of the world, and no matter the size of the transaction, it will come through without restrictions. Depending on how congested the network is at the moment, the Bitcoin transaction could come through within minutes.

4. A way to escape inflation

Regardless of its volatility, people are pouring money into Bitcoin as a means to protect themselves from the depreciating asset that is the traditional fiat currency. Every years, inflation keeps eating away at the true value of your savings, with the official estimates putting it somewhere around the 2% mark. Do note that some believe that the real effects of inflation are much more devastating and could even be between 2% and 5% of your fiat currency’s value on a yearly basis. In a single decade, this could eat away a significant portion of your savings. Bitcoin, on the other hand, has experienced steady growth since its inception, with occasional swings here and there.

5. Bitcoin is an appreciating asset

While traditional fiat currencies depreciate in value over time, Bitcoin can be considered as an appreciating asset. Not only does investing in Bitcoin protect against inflation, it also serves as a store of value. Keep in mind that Bitcoin comes in a predefined supply, meaning that more coins will not enter the economy as time goes on. Time it right, and you may see a hefty return on your investment. Either way, you should always do your research before investing. As a general rule of thumb, you will see more volatility in the short-term period of time, so investing is much more of a marathon than a sprint.

Bitcoin is slowly shaping up to become the global currency of the world with no centralized governing entity.

Bitcoin across the industries

Over the course of time, additional retailers have joined in on the trend to make Bitcoin a globally accepted payment method. Out of the known brands, Microsoft, Burger King, Home Depot, and Starbucks all stand out as notable examples. Due to its decentralized nature, the casino industry is much in favor of its use as well. More information on how you can make your first bet using Bitcoin is available here:

 

https://libancasino.com

Comments Post Comment

Leave a Comment

Submit