Why is cryptocurrency much better than fiat currency???

Cryptocurrency vs fiat currency

In today's post I'd like to explain to all of you why I think that cryptocurrency ( it does not have to be bitcoin) is a much better solution of our monetary system.

I will take bitcoin as the example of cryptocurrency even though I do not think that it will be bitcoin particularly which will replace fiat currencies because of its higher fees and slower processing of transactions.

As an example of fiat currency I will take USD thanks to its huge influence and "value" over the world and thanks to the great knowledge from Mike Maloney youtube - hidden secrets of money , gold&silver book

Limited supply

Maybe you ask why is the limited supply so important. Well I think you have heard of something called inflation. Inflation is simply put expanding of currency in fiat currency case it is caused by printing more dollars out of thin air. The consequence of this are increasing prices of everything but only in comparison to dollar.

As an example I can take value of average house in OZs of gold if the price of a regular house today was 100 000 $. Meaning if in 2018 a house would cost 100 000 $ (81.3 OZs of gold) in 1960 it cost only 7 500 $ ( 25.26 OZs of gold), in 1980 it was 18 950 $ ( 9.47 OZs of gold), in 2000 it was 42 000 $ ( 110.8 OZs of gold, gold undervalued) and in 2010 50 000 $ (40.68 OZs of gold). From these stats you can see that gold is always overvalued, undervalued or in some kind of equilibrium to real estate and vice versa. But what you can definitely state is that the dollar is keeps going down against real estate. Why? because there is 35x more dollars in existence than there was in 1960!!!

Bitcoin

• limited supply, once all bitcoins are mined no other bitcoin will ever be created therefore the value of bitcoin cannot be cheated

coinmarketcap

USD

• basically unlimited supply, meaning that its value will be always decreasing unless some dollars in form of debts disappear when people go bankrupt

• people are being cheated all the time and have to pay higher taxes to pay the debt that was not created by them but by irresponsible spending by their state

• saving is basically impossible since the dollars oyu save now will have x times lower value in e.g 10, 20, 30 years,...

Transparency

this does not have to be a good thing always because we all need some privacy but there is already few cryptocurrencies that are completely anonymous yet still all the transactions are shown on the blockchain.

Bitcoin

• fully transparent thanks to the blockchain technology where anyone of us can see all transactions that have been or are being processed but nobody can see your actual name just your btc adress

USD

• partly transparent but most people do not know where their money come from

• when you pay in cash it is completely anonymous, you can buy even something that is illegal with it, you can do that with cryptos as well it is just easier ;-))

Usability

Bitcoin

• already spreaded world wide and can be used by anyone

• larger amounts can be transferred very easily with low fees

• you do not have to give any of it to a third party or a bank to store it for you because you can hard drive wallet at your home

USD

• most of the countries have own currencies so you always have to exchange your currency if you have to travel somewhere, unnecessary fees

• thanks to credit cards nowadays we do not have to pay in cash but still the fees are pretty high and the process is pretty complicated
• larger amounts usually equal higher fees

• money usually kept in banks and if all of us decided to withdraw our "precious currency" at the same time the banks would not even be able to pay to all of us because they have to keep only 10% of your dollars and can lend the rest

History

Bitcoin

• has almost no history but in every aspect seems better than fiat so why not to give it a try

USD

• every fiat currency that have ever existed collapsed the currencies we use today will collapse as well it is just a question of time

Thank you for sharing, upvoting and commenting guys.