Why choose Bitcoin over Fiat Cash?
Fiat currency or cash, as many might be unaware of, is the traditional or national currency of a country, predetermined and fixed by the respective government who is running the country at the time. Such a currency cannot be converted by law and its value is subjected to change in accordance to state order. This type of currency is mined in government-run minting corporations. Only the Central Bank of a nation reserves complete rights to introduce or disbar any ongoing currency in a country.
Bitcoin is a digital form of currency or asset that came into being in the year 2008 and hence, is vastly different from traditionally transacted Fiat Cash. Its system is open-source software and its transaction requires no intermediary. However, all the transactions made, is recorded in a public ledger (block chain). Since there is a lack of any single administrator supervising the entire bitcoin system, it has been officially declared as a de-centralized currency by the U.S. Treasury. Though there has been speculation over how such a cryptocurrency will fare in the market and whether the common public will accept it or not, there has been observed some definite advantages to using Bitcoin over normal Fiat Cash.
Benefits to using Bitcoin instead of Fiat Cash
Financers have discovered a number of benefits of using modern-day Bitcoin over traditional currency or Fiat Cash.
While the common public is never in the know of exactly how much currency is being printed or minted by the government each year, each Bitcoin that is mined or transacted are made public knowledge by the virtue of a publicly distributed ledger. This way, there is no chance of any Bitcoin currency getting misplaced, lost or misused.
Even though people had initial qualms about using the Bitcoin currency for buying commodities or paying for services in the market, Bitcoins have begun fast circulating and being used for making payments in the recent years. This is due to the fact that the percentage of tax (2-3%) that one owes to the government, every time a transaction is made by the credit card, will not be charged in case of Bitcoin transactions. Also, unlike normal credit cards, the purchaser is liable of paying the fees instead of the vendor.
While traditional Fiat Cash cannot be obtained other than from a bank or an ATM, one has the option of both buying and selling Bitcoins, either from directly online or from the several offline ATMs that cater exclusively to Bitcoins.
Since traditional Fiat Cash is totally under the control of the government of a country, one has no option but to blindly trust that government regarding the proper mining and fair distribution of currency. However, it is often seen in today’s times that some governments are fret with corruption to the highest extent. This has largely boosted the black market to secretly forge fake currency and release it in the main market. At present, the market is filled with forged money with no way of telling the real ones from the imitations. On this front, Bitcoins are completely free from any such corruptions since the entire process of conceiving a Bitcoin is governed by mathematics alone.