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When Bitcoin first came onto the scene, a lot of people were skeptical. It brought to the fore many promises that seemed to paint it as the superior type of fiat currency out there. But how could it beat fiat currencies like the ordinary bank note, which has been the norm for such a long time?
And as we’ve seen how popular Bitcoin has been in the past few years, there are REAL benefits indeed that many people seem to gravitate towards.
That is why we’ve rounded up a list of the top 7 benefits of using Bitcoin over fiat currencies, to really get a good understanding of why Bitcoin is as popular as it is.
But before that, we highly recommend that you follow a trusted crypto source to keep a track of all the happenings and developments happening in the cryptosphere. This will help you in a better understanding of up-to-date guides and reviews on all things including crypto gambling, casino games, and other news related to cryptocurrencies.
Moving on, to better understand the benefits that Bitcoin provides, it’s best that we’re on the same page on what fiat currencies are in the first place.
Fiat Currencies Explained
Fiat currencies are basically a type of currency that is assigned or decreed by a government as legal tender. Their defining feature is that these currencies are not pegged to a physical commodity such as silver or gold.
To illustrate this, let’s look at our ordinary bank notes. These pieces of paper, by themselves, don’t hold any value. Compared to something like silver, which has value as raw material, these pieces of paper only gain value because a certain type of banknote corresponds to a particular value, as assigned by a government.
Now that we understand what fiat currencies actually are, let’s take a look at the top 7 benefits that Bitcoin provides compared to these fiat currencies:-
- It is generally more convenient and accessible
This benefit is probably the most obvious but also the most underrated one. Because Bitcoin is a cryptocurrency, which mostly works through the internet, it is hands down more convenient than regular fiat currencies.
Gone are the days when you would need to plan out a trip to the bank. Now, all you have to do is open your computer or smartphone, connect to the internet, and there you have it, you can now start to transact away!
- It can provide you with quicker transactions
In addition to it being more convenient, Bitcoin, being on the blockchain technology offers users much faster transaction times compared to more traditional fiat currencies.
With the whole system being digital, one transaction is as easy as tapping a few buttons and you’re on your way. No more lines and no more waiting just to see your transactions go through.
- It is decentralized and user-centric
This is a big one. As Bitcoin primarily utilizes blockchain technology, it is built upon a system of decentralization. How? Blockchain technology is basically a DISTRIBUTED LEDGER that holds and maintains all the transactions and other data of the crypto coin.
This distributed feature means that all users can access the blockchain and the records it holds. This provides users an added layer of security knowing that their hard-earned money is not just kept by one institution.
Also Read: Bitcoin: What Makes it Valuable Than Fiat
- It provides for anonymity amongst its users
Compared to your usual fiat currencies, Bitcoin only shows others your crypto hash identification (ID) to other users. This is just a string of numbers given at the end of every transaction, which doesn’t tie or broadcast your personal information at all, merely adds the transaction to the blockchain. This adds another shield of security overall.
- It allows for easier global transactions
Because the blockchain technology runs on the internet, Bitcoin allows you to transact with anyone in the world. All it asks is that both users have an internet connection and a digital wallet, and you’re golden buddy!
- It is extremely hard to tamper with
Bitcoin’s use of blockchain technology makes it super hard for criminals to tamper with because each point of data in the coin is “chained together”.
Therefore, if one were to change something in the system, one would have to go backwards and change all that’s connected to it. This makes it extremely difficult for bad actors to attempt to steal your Bitcoins.
- It is not bogged down by regulations
Last, but definitely not least, Bitcoin is less regulated compared to traditional fiat currencies. Because Bitcoin is decentralized and is not handled by a central monetary authority, users have fewer rules, regulations, and procedures to worry about when it comes to making transactions!
Also Read: Bitcoin vs Gold: Are Investment Opportunities Shifting?
And there we have it, 7 benefits that Bitcoin provides compared to fiat currencies. If you ask me, Bitcoin provides some really good features that can really give more traditional currencies a run for their money. All the more for you to go ahead and give the budding digital currency a try!
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