Most people didn’t think much about fiat or conventional money until Bitcoin became increasingly popular. The skyrocketing prices of this virtual currency in 2017 brought it to the limelight before capturing the world’s attention in 2021 after hitting an all-time high price of over $65,000.
Essentially, most people and institutions have used fiat money as their primary transaction method for decades. Respective countries have fiat currencies, and they determine their exchange value. Each nation has a central bank that controls or regulates fiat money. Also, fiat money’s value can decrease or increase based on the stock market trading and people’s trust.
On the other hand, being a digital currency means Bitcoin doesn’t have a central regulating or governing authority. And this attribute makes Bitcoin transactions secure, flexible, and affordable. Bitcoin uses blockchain technology to create a more transparent system, and users can quickly monitor transactions.
Satoshi Nakamoto, the mysterious founder, launched Bitcoin in 2009 after the 2008 financial crisis. While the cryptocurrency didn’t gain popularity immediately, it became a global phenomenon when more people and institutions began investing in it after 2017.
Also, more people now purchase Bitcoin on platforms like https://bitiq.org/es/ and use it to pay for services and goods. And its use, especially for cross-border transfer, is increasing globally, meaning some individuals prefer it to fiat money. So, what makes Bitcoin better than conventional money? Here are some reasons.
Contents
- Low Transfer and Storage Costs
- Increasing Adoption
- Divisibility
- Accessibility
- Zero Interference
- Final Thoughts
Low Transfer and Storage Costs
When using fiat money, people store it in traditional bank accounts. These accounts have minimum balances, and transferring the funds costs them hefty fees. Bitcoin users store their coins in crypto wallets that don’t have minimum balance amounts.
When transferring Bitcoins, Bitcoin charges lower than fiat money. Although moving Bitcoin may increase the charges as its value rises, it remains cheaper than conventional money.
Increasing Adoption
Some people thought of Bitcoin as a passing cloud, but they were wrong. Bitcoin has many benefits over conventional money, which has made more companies embrace it. For instance, companies like MicroStrategy, PayPal, and Visa embrace Bitcoin. Other institutions have bought Bitcoins worth millions of US dollars. This increasing adoption means owning Bitcoin is more than having money. Bitcoin is an investment, better than fiat money, which governments can manipulate by minting more of it.
Divisibility
Bitcoin’s divisibility means people can transact with small amounts of cryptocurrency. Ideally, people accept Bitcoin transactions in the 100th million parts, meaning a transaction can be equivalent to a 0.00000001part.
Also called a Satoshi, this number makes a minor transaction impossible with fiat money. Therefore, experts argue that Bitcoin is the most equitable transaction method globally. Exploring Bitcoin more enables you to understand why it’s an excellent payment method.
Accessibility
Being digital means Bitcoin is a global currency. People can use this virtual currency for cross-border transactions, with this virtual currency retaining its value. Unlike fiat money, users don’t incur hefty currency conversion fees.
Borders limit fiat money within its respective country’s borders. If you wish to send a friend or relative money abroad, you must pay conversion fees. What’s more, the transaction will take longer than a Bitcoin payment.
Zero Interference
Bitcoin is decentralized, meaning no central authority can interfere with a Bitcoin transaction or network. Governments can interfere with Bitcoin’s production or value. Also, fraudsters can’t interfere with the blockchain ledger that records all Bitcoin transactions. No criminal has infiltrated the Bitcoin network, prompting experts to say that the cryptocurrency is fraud-proof.
Final Thoughts
Some enthusiasts argue that Bitcoin will eventually become a global currency. Whether that will come to pass is a matter of time. For now, people continue to invest in and trade Bitcoin. Others use it as their favorite digital currency, especially for cross-border transactions.
