There is no doubt that cryptocurrencies are changing the whole world of payments. Crypto is changing the way people make payments, and recently its usage has reached new heights. Adoption of cryptocurrencies are increasing day by day. According to the various source more than 1.5 million crypto transactions occur in a day.
There may be a possibility that at the time of reading this article many of you have experienced the payments in cryptocurrencies. There are a lot of organizations that have already started making transactions in cryptocurrency or come across a service that uses it. But if you still prefer cash over digital payments or crypto for that matter-for concerns over safety, we have several reasons to help convince you how cryptocurrency is better than fiat, and why you should start using cryptocurrency today.
A Brief Description of Fiat and Crypto
A Fiat is defined as a currency that is declared by a country’s government to be legal tender. Examples of fiat are the US dollar, Euro, Yen, Pound Sterling, etc. Unlike other historical currencies, which were backed by the value of a physical commodity, such as gold, or silver, the value of fiat is derived from its demand and supply as well as the stability of the issuing government.
A cryptocurrency is a digital-only token that used the technique of cryptography to regulate how the tokens are created, how they’re traded, and how secure they are. They are digitally encrypted currencies stored on a blockchain. And it doesn’t use or need a central bank or government to control or manage them.
How is Crypto Better Than Fiat?
The primary argument against using cryptocurrency for payment is that it is unsafe. But you’d be surprised to know that Cryptocurrencies are more secure than our fiat currencies, but that’s not even their biggest advantage.
Impossible To Forge: Perhaps the biggest problem with Fiat/Cash currency is the currency note’s integrity itself. Fiat currencies are relatively easy to forge, and governments keep battling this lifelong battle to keep a check on all the notes in circulation. This is not the case with cryptocurrencies, as each crypto token that’s minted has a unique fingerprint hash associated with it. This makes it impossible to forge or replicate, and it also keeps in check the total supply of minted coins.
Security and Anonymity: Doesn’t Occupy Any Physical Space-Cryptocurrencies exist on a blockchain wallet that is secured by a combination of two keys, a public key, and a private key.
Global expansion: Making international payments is often difficult and has a bad overall user experience. Cryptocurrencies don’t know any borders. With cryptocurrency, you can pay anyone from any corner of the world.
Resistant To Censorship: The governments have no control whatsoever over any cryptocurrency. No person or authority can prevent you from transferring your funds or making payments when it comes to crypto.
Decentralized Environment: Fiat currencies, however, have several restrictions since they are controlled by the government. Banks and governments can freeze your accounts and can even track your money movements.
Fast and Cheaper Transactions: When using ATMs to withdraw cash, or using a banking service to process payments, the transaction fee that’s charged by some of these banks can sometimes be unreasonably high. This is not the case with crypto, since the only fee that’s charged is the network fee, also popularly known as the ‘gas fee’. The gas fee is much cheaper compared to any transaction fee charged by our banks.
Unlike fiat currencies, cryptocurrencies don’t physically occupy your wallet or a bank vault. The virtual wallet not only saves physical space but is also more resilient to any kind of attack. Fiat currency is issued and regulated by a country’s government, and they can limit a person’s usage of the currency or regulate the money transfer. Many governments also don’t support making international payments.
Closing thoughts !!
Now you have learned why you should choose cryptocurrencies over fiat money. Our question to you is: do the inherent benefits coming from cryptocurrencies outweigh those of “real” money? Looking at the growth of Bitcoin from 2009 to today, the value has been appreciating despite several dips and rises in the market.
Additionally, many countries are warming to the idea of going digital, with China furthest along in its plans for a digital yuan. Facebook’s Libra global currency brought the importance of going digital front and center for regulators who are keen to stay ahead of private corporations. With the race to create global value, utility, and commerce heating up between cryptocurrencies and fiat money, expect to witness many incoming developments in the way you pay.