Bitcoins vs Fiat money: So far so good, Bitcoins is winning in valuation. There are other ways that Satoshi Nakamoto’s Cryptocurrency is better to use than Fiat money. These advantages are what we are here to spell out. Even though the whole world has not totally caught up with the crypto bug, there are already obvious signs that digital currency will rule the future. So what exactly is Fiat Money and Bitcoins?
What is Fiat Money?
Don’t let the cool name fool you, fiat money is just regular cash. The paper notes we use to pay for goods and services in our everyday life. Examples of fiat money are Naira (-N-), Pounds (£), Dollars ($), Yen (¥) etc.
Major Characteristics of Fiat Money
- Centralized: Controlled by the central bank.
- Physical: Fiat Money is physical in nature (unless when making transfers though)
- Minted: Fiat money notes and coins are created in a mint.
What is Bitcoins (BTC)?
The king of the crypto world. It is a decentralized digital currency that exists only online Currently valued at 1 BTC to $48,733.10. It’s by far the most valuable asset in the world, even more than gold.
Major Characteristics of Bitcoins
- Decentralized: It is not controlled by any authority.
- Digital: It only exists online
- Bitcoin is created with Mathematics.
- They can both be used for Payment. Although Bitcoin isn’t yet accepted in some countries as a legal tender.
- They both have stored value.
Differences that Make Bitcoins Better Than Fiat Money
Here are reasons why Bitcoins is better than regular cash:
|The decentralized nature of the currency makes it non-taxable by the government.
|Fiat Money is taxable.
|The fact that it exists only in the digital space makes it more secure from physical robbers.
|The physical nature encourages armed robbery.
|Bitcoin is not as expensive to create because it is created with mathematics.
|They are more expensive to make because of the raw materials used in making them.
|No bank charges when you save your Bitcoins in a wallet.
|There are Bank charges for storing your physical cash in a bank.
We do not know the future but we can predict how it will look due to present trends. Bitcoins and other Cryptocurrencies are here to stay from the look of things. Investing in Bitcoins now will turn out to be a smart decision in the future.
Binance, Luno, Localbitcoins etc are platforms you can open an exchange account on to buy and sell Bitcoins. You can buy directly from the exchange platforms or through peer to peer trading. You can also use your gift cards to acquire Bitcoins on secure platforms that buy gift cards for BTC at high rates. However, if you want to invest in the ever-growing Bitcoins, be sure to seek the advice of a crypto professional.