Most of us were aware of only conventional fiat currency(paper notes and coins) till 2017, when Bitcoin came into the picture with skyrocketing prices of touching almost $10,000. Who knew that conventional money which existed since ages can be replaced? (even though dozens of problems existed with fiat). Satoshi NakamotoSatoshi Nakamoto(pseudonymous as founder of BTC), a visionary with a whitepaper associated with cryptocurrency launched Bitcoin in 2009 (after the global economic slowdown of 2008). Some of the investors took interest and tried to explore the era of the digital financial system but BTC took ten long years to gain its value in the real world. Presently, the large community of crypto enthusiasts have found a number of reasons to prove that bitcoin is better than conventional cryptocurrency. In this article, after analyzing a number of factors, we just need to explain a few of the reasons which actually signify that bitcoin can be an alternative to traditional fiat currency.
Bitcoin Is Better Than Conventional Currency | Exploring Reasons
Bitcoin is simply a digital virtual currency or a medium to conduct digital transactions by sending and receiving bitcoins directly from and to your crypto wallets. It follows the decentralized model (not backed by any intermediary or central authority!) and based on distributed ledger or blockchain technology. As the global interest is increasing day by day in BTC, it has become important to us to get you aware of the reasons behind their popularity and explain clearly about bitcoin and conventional currency.
Following are some of the benefits which makes Bitcoin better than any conventional fiat currency:
- Decentralized: Bitcoin is based on the model of decentralization. It means no central authority acts as the intermediary between the sender and receiver, rather transactions take place as peer-to-peer exchange and are recorded and completed on the network of blockchain. Practically, you can own and control your own cryptocurrency.
- Digitalized: Cryptocurrency or Bitcoins are like programmed software where completion of the transaction is based on the solution of a complex mathematical algorithm on the network of the blockchain (Don’t worry you don’t have to solve the problems!). So the problem of storage, damage, and also the huge infrastructure called banks are minimized.
- Volatility: As compared to the conventional currency whose value changes every minute depending on the Forex markets, policies announcement of regulators and various other factors; Bitcoin is less volatile as it does not belong to a particular country but participants from all across the world can mine, invest and trade in cryptocurrency.
- Traceability: Corruption is prevalent all across the world due to a lack of proper traceability mechanisms associated with fiat currency. Contrary, every transaction of bitcoin can be easily traced due to blockchain technology. Every transaction after getting verified by participants or miners gets recorded in the form of a block.
- Security: Bitcoin is relatively more secure than conventional currency as it deploys cryptographic techniques to safeguard the funds. For every verified transaction, the receiver of Bitcoins is provided with private keys (like a password) to unlock the Bitcoins at the time of selling. Also seed phrases and recovery phrases are also provided. For storing private keys, crypto wallets both online and offline are available.
- Transaction Charges: Since the bank is not responsible to maintain and administer your currency, you need not pay heavy deposit and withdrawal charges, maintenance charges, charges for credit/debit cards, charges for not maintaining the minimum amount in your account, and many more while using digital coins. You need to pay nominal transaction fees even if you wish to transfer Bitcoins worth millions of dollars.
- Counterfeiting: As the technology upgrades, there are a variety of machines available in financial space that are engaged in counterfeiting fiat currency. On a daily basis, regulatory and central authorities release notices to safeguard yourself from duplication or fake currency. In the case of Bitcoins, as every transaction is recorded on a blockchain network, there is no possibility of faking cryptocurrencies as even a single change is done, every connected node will be notified for the same.
- Accessibility: The thought of standing in the long queue of ATM might scare you every time you run out of sufficient cash. But in case of digital coins, you just need to have your smartphone or computer with internet access and you are good to go. You simply need to click a few of the options to send or receive crypto coins and you can continue buying things that you were scrolling.
- Transaction Speed: Your client had deposited a cheque of a huge amount in your account but you need the funds at the same moment he deposited it. Oops! You can’t withdraw the funds until the cheque gets clearance from the relevant authorities. Now, suppose your client has sent your payment in the form of Bitcoins, within a few minutes you can easily utilize them.
- Borderless: Transnationality is also the reason why bitcoin is better than conventional currency. With no boundaries, no exchange values, and no intermediaries, Bitcoins can be transferred easily, quickly, and smoothly all across the world from senders wallet to receivers wallet, that to minimal international charges. You are planning for a foreign trip and worrying about splitting your cash and keep it here and there at different places in suitcases or in your pockets to safeguard your cash. We have a better alternative to Bitcoin, where you just need your smartphone and not to worry about stealing and conversion rates of currency.
The purpose of listing out the reasons to support Bitcoin Is Better Than Conventional Currency is not to convince you against any notion but to help you in taking the judicious decision if you are thinking to invest in cryptocurrencies, or wants to split your funds between traditional and crypto markets or in case of any decision associated with Bitcoins. Cryptocurrencies have paved the path for a new digital financial revolution where the financial system will be more transparent, digitalized, decentralized, associated with minimal transaction fees, easy traceability with highly secured and private currency.