Why is bitcoin better than regular money?
Why is bitcoin better than regular money?
Have you ever had to explain to someone the basic principles of bitcoin for a long time, when the interlocutor was incredulously silent, and then uttered: "Okay, but still, why is bitcoin better?" Keep a complete list of reasons.
Correct control
Conventional financial systems are created in such a way that none of us knows where all the funds are at a particular moment in time, and their total amount is kept secret. On the other hand, the government, with the help of banks, very closely monitors the money in the accounts of each person. In other words, the system itself is not controlled in any way, and ordinary people live in conditions of total surveillance.
Bitcoin (EXANTE: Bitcoin) works in a completely different way. The system is under complete control; anyone can check in which wallets and how much the cryptocurrency is stored. At the same time, all wallets are anonymous, and no one knows the names of their owners. This is a great example of the right approach when the system is in control, and not individuals.
Security: funds belong to their owners
You own your bitcoins and no one can take them. With conventional currencies, the situation is different: banks can freeze accounts, and the government can confiscate their contents. This is a very important aspect in the modern world, where money often acts as a way to pressure and punish people. Whereas bitcoin = complete economic freedom.
Transparency
Unlike conventional currencies, Bitcoin is completely transparent. Anyone can check the blockchain and make sure everything is working as expected. Dishonest actions will be immediately noticed and corrected. It is for this reason that counterfeit bitcoins and corruption within the system are simply impossible.
No printing presses
The total amount and rate of bitcoin creation is predefined and cannot be changed by the government or any other party. Unlike regular money, new bitcoins cannot be “printed”. This completely removes inflation from the system (otherwise it is called “stealing money from the population”) and eliminates the dishonest approach when new money is simply printed and used at the discretion of the authorities (for example, to finance military operations and other harmful or illegal actions).
Decentralization
Bitcoin has remarkable qualities like decentralization. This means that the currency does not have a single issuer, its existence in the economy is ensured by its holders. Another point: the decision on the validity of the transaction is made not by the central organization, but by the entire community.
Bitcoin guarantees its owners economic integrity as it cannot be counterfeited or destroyed.
Capitalism and the free market at its highest
Some people don't understand why bitcoin is worth that much. Anyone familiar with the stock market knows that the price of bitcoin (like stocks) depends on supply and demand. In short, the more people believe in cryptocurrency, the more it costs.
Bitcoin pricing is actually an example of ideal capitalism in which no one can influence the price. Bitcoin is an example of a fair market that existed at the dawn of civilization. Unfortunately, today it is extremely rare.
Bitcoin is more convenient than plastic cards
To accept payments using plastic cards, the store needs to purchase or rent a card reader, conclude an unfavorable agreement with the bank and pay a commission of 3%. For operations in cryptocurrencies, a smartphone / computer and a free wallet are enough. For business, bitcoin is much more convenient, while the user does not depend on the bank or payment system, which can suddenly withdraw the agreement or cancel the payment.
Sustainable economy
The main cause of economic crises is the existing flawed economic system based on debt. Whether it's hyperinflation, bank failures, or out-of-control budget spending, the root cause is always the same. Bitcoin will avoid 95% of economic crises as it is not debt-based and impossible to print.
Exchange of bitcoins for regular currencies - a temporary measure
Today, a reasonable question often arises about the complexity of exchanging bitcoins for ordinary money. Yes, many exchanges allow you to convert cryptocurrencies into dollars and euros with minimal costs, but this requires going through the painful process of verification and communication with the bank. You can choose easier exchange methods, such as ATMs or personal purchases, but the commission is often 5-10%, which is quite expensive.
The fact is that the exchange of bitcoins for conventional currencies is only a temporary measure associated with the parallel circulation of two types of money. Very soon, perhaps in the next 10 years, most consumers will ditch dollars and switch entirely to bitcoins. You no longer have to convert digital currencies to conventional ones and bitcoins can be used everywhere. Even now, many goods can be bought for cryptocurrency, and in the future it will become as widespread as plastic cards.