Bitcoin vs. Fiat Currency… Technology is developing at a rapid pace, and now everything is getting dependent on the Internet.
Most of the things have been digitalized, and one of them is currency. The modern currency is a cryptocurrency that doesn’t have any physical appearance but allows you to make transactions.
There are numerous cryptocurrencies in the market, but bitcoin is the most popular one.It is a decentralized currency that is accepted worldwide and enables you to make instant peer-to-peer transactions.
Some people believe that it is taking the place of fiat currency as it offers numerous features that make it better than it. You can use bitcoin lifestyle to learn about some of such characteristics of bitcoin.
Bitcoin vs. Fiat – Currency Cross Border Transactions
One of the most incredible benefits offered by bitcoin is that it allows you to make international transactions.
When we talk about bitcoin vs fiat currency, with fiat currency, you can make transactions only in your country to complete an international transaction.
You will have to do a lot of formalities and convert the currency into the other country’s currency.
It requires a lot of effort and consumes a lot of time.
With bitcoins, you can make instant international transfers as it is a decentralized currency.
So the whole world accepts it as a common medium of exchange.
You can send or receive bitcoins from any part of the world.
This is a huge advantage, especially if you want to take your business to an international level.
There are zero rules or regulations they impose on bitcoin.
So you are free to use bitcoins anywhere, anytime, without taking approval from any bank or financial authority.
The world-wide acceptance of bitcoin is one of the primary reasons behind its increasing popularity.
No Control of the Government
Bitcoin is a decentralized cryptocurrency which means no government authority or financial institution has to control over it.
If we talk about bitcoin vs fiat currency, fiat is issued by the government, so it has complete control over it.
If you want to make any transaction with it, you need to first take approval from the bank, which makes it highly inconvenient.
With bitcoins, you can make smooth transactions with zero interference from any government authority.
You are free to make transactions whenever you want to without waiting for any permission from the bank.
There are minimal restrictions and regulations that you need to follow while using bitcoins.
It makes it an incredible cryptocurrency and far way better than fiat currencies.
You can buy, sell or store bitcoin without asking from the government or completing any formalities.
No Risk of Duplication
If we talk about fiat currency such as paper notes, it is possible to create duplicate paper noted.
And several people have committed frauds with it.
It is increasing the risks while using traditional currency, but with bitcoins, there is no such risk.
Bitcoin is based on blockchain technology, which makes it impossible to make a duplicate transaction.
Each transaction is verified by the miners before it is recorded in the blockchain ledger.
So, if there is any duplicate transaction, it will be spotted straightway in the blockchain.
A proper record of all bitcoin transactions is kept in the blockchain, and each transaction is linked to one another.
So, if anyone tries to do fraud or create a fraudulent transaction, it will quickly come into notice.
So, bitcoin protects you from fraud which another great reason to choose it over fiat currency.
Anonymous Transactions
Everyone wants to enjoy maximum privacy nowadays, but it has become difficult with the modern banking systems.
Nowadays, banks keep a proper record of all your transactions along with your finances as well as personal details.
So, they can track you in a flash of seconds using your transaction history.
If you want to make transactions while keeping your identity hidden, there is no better option than bitcoin.
It allows you to make anonymous transactions throughout the world.
They record all the bitcoin transactions in the blockchain ledger. It has your bitcoin address with it.
No personal or financial information is linked with it, which makes it impossible to trace your transactions.
Moreover, the bitcoin address keeps on changing with each transaction.
This enhances privacy to a great extent and offers excellent anonymity to the users.
Petr is a serial tech entrepreneur and the CEO of Apro Software, a machine learning company. Whenever he’s not blogging about technology for itechgyan.com or softwarebattle.com, Petr enjoys playing sports and going to the movies. He’s also deeply interested in mediation, Buddhism and biohacking.