There is a cut-throat competition between fiat currency and cryptocurrency. Some people believe fiat currency is better, whereas some ponder that cryptocurrency such as bitcoin easily outshines the traditional currency. You can use WealthMatrix for smooth and simple bitcoin trading. If you are confused between fiat currency and bitcoin, some reasons prove that bitcoin is way better than traditional currency.
With modern internet technology, the gap between different countries has reduced to zero. Most businesses have started making international transactions, but if we talk about fiat currency, it does allow you to make global payments, but it takes several days to complete a transaction. There are several restrictions imposed on global transactions with fiat currency which makes it slower and highly inconvenient. If you want to make international transactions, bitcoin is the better option. Bitcoin is a currency that that is accepted all over the world. So, you can use it to make transactions all over the world without involving any financial intermediary or bank.
One of the biggest reasons that make bitcoin better than fiat currency is that it allows users to make instant global payments. There are more government regulations imposed on bitcoin transactions that will enable you to make international payments in a flash of seconds. You need not wait for several hours, and the best part is that no additional charges are imposed on international transactions.
Make Small Tansactions
With fiat currency, there is a minimum value of the transaction that you need to make. But with bitcoin, there is no such thing as it allows you to make even the smallest transactions with great ease and comfort. Most people think that the minimum value of bitcoin is one bitcoin, but that’s not true. You can even use the 100th million parts of a bitcoin for making a transaction. The smallest unit of bitcoin is known as Satoshi, which is also the name of bitcoin’s creator, Satoshi Nakamoto. It is one of the unique features of bitcoin, which is undoubtedly not offered by any other currency in the world. There are several other unique features of bitcoin that make it way better than fiat currency.
One of the most significant risks that you need to face while using fiat currencies is inflation. Fiat currency is entirely controlled by the government, and the authorities can alter its supply in the market anytime. Inflation is a situation when the government supplies excess currency in the market, which increases the prices of goods and services and decreases the purchasing power of the citizens. The primary reason behind inflation is that the government has the power to alter the supply of currency in the market. With bitcoins, inflation cannot occur as it is a decentralized cryptocurrency.
The world ‘decentralised’ clearly explains that no government has any control over bitcoins. So, when there is no governing authority, no one can later the supply of bitcoins. Moreover, there are limited bitcoins that can ever be mined. In simple words, the supply of bitcoin is limited, so it cannot exceed the demand in the market, which makes it evident that inflation cannot occur in the bitcoin market.
Zero Transactions Charges
If you use fiat currency for making a transaction, you need to pay some additional charges with it. Traditional currencies are issued by banks, and they imposed some transaction charges on them. Credit cards and debit cards are the most common payment methods, and they charge a certain percentage of the total transaction amount as transaction charges. One of the top reasons that make bitcoin better than fiat currency is that it allows users to make transactions without any extra charges. With bitcoins, you need not pay extra charges, which are quite incredible.
With fiat currencies, the more significant transaction you will make, the higher charges you will have to, but there is no such thing with bitcoins. Bitcoin transactions involve minimum transaction fees, which makes them highly affordable and perfect payment for small-scale sellers. Bitcoin helps them to make faster and smoother transactions while saving a massive amount of transaction costs or fees.