Let’s talk today about why so much attention is now paid to cryptocurrencies all over the world and whether the cryptocurrency is really better than the usual money we are all used to – fiat. Also learn more about satoshi to usd.
- 1. The main differences between cryptocurrency and fiat money:
- 2. How do digital assets help fight the imperfections of the modern banking system?
- 3. Why is it more profitable for ordinary people to use cryptocurrencies than fiat?
- 4. Why is the digital asset system considered more “transparent”?
- 5. What prospects will open up for society if there is a transition from fiat to cryptocurrency?
The main differences between cryptocurrency and fiat money:
– Cryptocurrency is limited. As a rule, electronic currency is issued in limited quantities and it is not subject to inflation, unlike conventional currency.
— Reliable. It cannot be hacked, stolen or counterfeited.
— Anonymity. All manipulations with cryptocurrency cannot be traced, unlike paper money. They will only know about you the wallet number and the amount, and who you are and where you come from will remain a mystery.
— Independence. Neither the state nor any person controls the cryptocurrency. Its issue is not regulated, which is also the most important plus, unlike paper currency.
– Cryptocurrency no one except you can withdraw or freeze. No state has such an opportunity.
How do digital assets help fight the imperfections of the modern banking system?
We all witnessed when a bankrupt or bankrupt bank “drained” clients’ money into the account of the owner.
The very understanding of a bank as an intermediary between a client and a traditional bank in modern times raises a number of questions. Endless commissions, imposed services, suspicious insurance, restrictions on cash withdrawals from the account (that is, they use your money without paying you the due interest): all this puts banks in the position of a “black lord”.
Did you know that thanks to the “modern banking system”, the $600 billion dollars that are donated annually around the world lose exactly half in commissions and the support of this entire bureaucratic machine?
And here, like a superhero, cryptocurrency enters the scene. It is not subject to the laws of the bank, it is not regulated by them. Many banks still refuse customers to open a digital currency account, because they cannot control this money, use it and take their own.
We are on the verge of a revolution in the international financial system, which can be safely called “anti-banking”.
Why is it more profitable for ordinary people to use cryptocurrencies than fiat?
Growth. And we mean not only the growth of the market value of the electronic currency, but also the growth of popularity. Understanding that the future belongs to blockchain technology and the development of cryptocurrencies will allow you to save your money and increase it.
More and more countries are legalizing cryptocurrencies; in many countries, cryptocurrencies are already being used as a means of settlement between counterparties.
The very revolution that turns the financial system upside down is taking place. The absence of bankers and state influence on the cryptocurrency allows the latter to be the most promising, displacing fiat money every year.
Why is the digital asset system considered more “transparent”?
There is no intermediary here, no banker or other system that uses its own rules when interacting with your money and savings. In this dialogue, there is only you and the final someone, and that’s it. By eliminating a huge bunch of intermediaries who want to get rich on you, you benefit from lower commissions and the understanding that all your money will go where you sent it.
What prospects will open up for society if there is a transition from fiat to cryptocurrency?
Continuous progress changes our life and all its spheres. Previously, in order to eat, it was necessary to go into the forest and get food. Then came the trade. Then gold replaced the farmer’s conditional bag of wheat and allowed the market to be optimized.
Nowadays, money is supported by the state and its promises that everything will be fine and they will not depreciate. What are the downsides to this? People.
Where there is a person, various factors always appear that can destroy the pyramid of stability. Corruption, theft, the desire to get rich do not always contribute to government promises to its citizens.
Cryptocurrency is subject to a strictly prescribed algorithm, program. She does not need money, islands, yachts and education of children in England. Cryptocurrency needs to fulfill the functions and rules that have been invested in it. They cannot be changed, replayed or removed. The limited number of issued digital money removes the possibility of inflation. All this makes you trust the crypt much more than the state.