Advantages of Bitcoin over fiat and local banks

[flyingcarpet]

Your perspective highlights the appeal of Bitcoin as a decentralized and transparent alternative for those seeking more control and potential financial benefits. Bitcoin offers a number of features that make it a more attractive option for many people. The potential rewards of investing in Bitcoin are significant, and I believe that it is a worthwhile risk for those who are looking for a more secure and efficient way to store and transfer their money.

What you have said actually indicates two points that everyone differs in when describing Bitcoin.

First, it attracts investors because of the high potential of bitcoin.
Second, the risks in using Bitcoin as a storage medium.

Depending on how you look at it, your approach to Bitcoin is determined. Of course, there are many items other than these two items, but generally people who are new to Bitcoin and are considering investing are stuck between these two situations.

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[armanda90]

All your above-mentioned benefits of bitcoin could only be possible if you are not using a custodial service, because if you are using a centralised exchange to store your bitcoins or other currency and you expect things to be different from the banking sector, then you will be mistaken. When talking about the benefit and why it's good not to save on a local bank account, it's almost the same thing as why you shouldn't have funds where you don't have a private key or phrase. NOT YOUR KEY, NOT YOUR COIN Not your control, not your money.

I guess it will be more appreciated if you can outline your statement clearly and differentiate between the use of a custodial system and that of a non-custodial system, as many people see the use of bitcoin and other currencies as the same, irrespective of where they are being saved or used to transact with them.

Can't huge expected when saving Bitcoin assets in exchange wallet because relevant not your key is not your coins, we give full controlling to exchange or third party with our assets when they get collapse like FTX we loss all bitcoin assets. Its really important before talking about advantage between bitcoin and fiat how to give educate for investor use custodial wallet for saving bitcoin fund because have our key and controlling by our self not depend on exchange market.

Have more advantage with bitcoin than fiat, we know inflation values of fiat every years and long term saving assets in the bank will get drop values at the future, difference when saving bitcoin actually with long term investment has chance with our assets increasing depend bitcoin price raise up.

[Findingnemo]

One of my favorite aspects of Bitcoin is how its deflationary. There can never be more than 21 million Bitcoin in supply. But it is always possible for there to be less (forever lost wallets, for example).

I wouldn't say it is deflationary because deflation is not good for the economy of any country but bitcoin is completely limited supply which means no more or no less but most of the bitcoins lost in its early days and some stats shows it will be around 4 millions bitcoin and from now on it is less likely to happen to lose wallets because people know how much one bitcoin worth now.

The value of each Satoshi would only go upwards if the world adopted Bitcoin as a legal tender. Which it will. I cannot wait for that day.

As a crypto enthusiast, I would love to see countries accept Bitcoin as legal tender but I wish there should be any day as you expect because if you remember The Great Depression (1929-1933) which can collapse the economies of the country so this reason itself can be a cause for the fall of bitcoin.

Bitcoin is good and more decentralized than any other cryptocurrency but imagining it as the only currency used all over the world like thousands of transactions per second, bitcoin is not designed to handle such unless the government creates the infrastructure for that to happen with the L2 layer.

[Alpha Marine]

• investment capital: Investing in Bitcoin offers the potential for long-term profits as its price tends to increase over time. In contrast, traditional banks often do not provide substantial long-term interest on the money they loan out, making Bitcoin an appealing alternative for those seeking high returns on their investments.

Personally, I see this as a reason why more people should adopt Bitcoin. If you do not care about the control of your funds and all the centralized organisations do, you should care about the value of your funds. You should care about how inflation eats deep into your savings.

Bitcoin is like a shield to the devaluation of currencies. With Bitcoin you can keep your money in your wallet and it won't depreciate due to inflation. It carries its own risk, in the sense that Bitcoin price might dip but it's still way better than saving it in a bank for a long time.

The fact that you can save your money and at the same time that savings becomes an investment is a reason to embrace Bitcoin.
With Bitcoin as long as you use a non custodial wallet, you can control your by yourself in your own way. No one will decide what's your maximum and which country you can transfer to.

[goldkingcoiner]

One of my favorite aspects of Bitcoin is how its deflationary. There can never be more than 21 million Bitcoin in supply. But it is always possible for there to be less (forever lost wallets, for example).

I wouldn't say it is deflationary because deflation is not good for the economy of any country but bitcoin is completely limited supply which means no more or no less but most of the bitcoins lost in its early days and some stats shows it will be around 4 millions bitcoin and from now on it is less likely to happen to lose wallets because people know how much one bitcoin worth now.

The value of each Satoshi would only go upwards if the world adopted Bitcoin as a legal tender. Which it will. I cannot wait for that day.

As a crypto enthusiast, I would love to see countries accept Bitcoin as legal tender but I wish there should be any day as you expect because if you remember The Great Depression (1929-1933) which can collapse the economies of the country so this reason itself can be a cause for the fall of bitcoin.

Bitcoin is good and more decentralized than any other cryptocurrency but imagining it as the only currency used all over the world like thousands of transactions per second, bitcoin is not designed to handle such unless the government creates the infrastructure for that to happen with the L2 layer.

I believe that Bitcoin can handle the negative aspect of deflation, as deflation is only bad for the fiat system and anything that resembles it. Bitcoin on the other hand seems to be perfectly suited to turn deflation into a positive thing. While I completely agree that deflation can be worse than inflation if it is brought in through negative factors (lack of demand or a decrease in efficiency throughout the markets, this does not seem to pose a problem for Bitcoin as Bitcoin is being constantly updated, both technologically as well as economically. This insures an proportional increase in efficiency. And as you said, L2 layer is merely another addition to Bitcoin which proves an increase in efficiency is progressing.

What about the lack of demand? Well in a scenario of Bitcoin being a global legal tender, Bitcoin is government recognized money itself. Bitcoin is not a product or a service. So what lack of demand of money do you see? A decrease in demand? Sure. But Bitcoin that decrease is compensated by the incentive of profitable mining after the mining difficulty adjusts to the dropped hash rate.

[ZAINmalik75]

Basically there are numerous benefits which BTC provide us over local banks and fiat. For example in fiat we have the benefit of hedge against inflation, we can store our valuable assets for longer term while securing the value. Fiat has to be secured some where safe if kept physically and if in banks then choice of banks must be good like bankruptcy of banks is not something uncommon.

Point is, the benefits are a lot but to keep the importance of BTC short I can say I am agree with your factors but there are more on the list like scarcity, decentralization, anonymity etc.

You basically defined all the basic flaws banks and local currency have while BTC do not have them. In BTC we have the full control over our own money which in it self a hard task and can not be fulfilled or completed by someone who is so irresponsible. But harsh reality to this fact is we are still dependent on banks as we can not avoid them unless we have direct physical p2p traders whom we can trade face to face but most of the people do not even think about it and second is those who have access to BTC ATMs.

[serjent05]

The first two of the benefits were less likely to be utilized by Bitcoin holder, especially the newbie. They don't yet have the knowledge to use non-custodial wallet where they have full control over their own fund, most of them stored it in an online wallet, or worse some of them even store bitcoin in the centrailzed exchange wallet.

Newbies can learn so eventually they can take advantage of the first two benefits.  Bitcoin users aren't stuck on the first day of their experience, they eventually grow and become knowledgeable, Many newbies who are just starting out also learned the importance of using a non-custodial wallet and the information about it is not a secret.  It is scattered in the internet with many articles and sites explaining about them.  Aside from that, those who guide these newbies also share the importance of non-custodial wallets so I believe we should not think that newbies are not knowledgeable about the basics of Bitcoin.

Cost-Efficiency: Unlike banks, Bitcoin doesn't burden you with monthly maintenance fees, card maintenance costs, or hidden charges.

In return, Bitcoin charges with transaction fee whenever we send our Bitcoin.  While banks transfer within the same banks doesn't require any fee.  With this, Bitcoin shines because of its boundless transaction that is way cheaper than the international bank transfer.

[hatshepsut93]

Financial freedom is not the same as financial security. Bitcoin gives you control, but its value is not stable, it's not backed by something that you can predict. Bitcoin showed great performance in the past, but there is no proven model that can guarantee same performance in the future. Or even good performance. You can say that fiat can crash too and be right, but any asset can crash. So the key to managing wealth is diversification between many different uncorrelated and reliable assets, instead of going all in on one thing.

[Blitzboy]

Basically there are numerous benefits which BTC provide us over local banks and fiat. For example in fiat we have the benefit of hedge against inflation, we can store our valuable assets for longer term while securing the value. Fiat has to be secured some where safe if kept physically and if in banks then choice of banks must be good like bankruptcy of banks is not something uncommon.

Point is, the benefits are a lot but to keep the importance of BTC short I can say I am agree with your factors but there are more on the list like scarcity, decentralization, anonymity etc.

You basically defined all the basic flaws banks and local currency have while BTC do not have them. In BTC we have the full control over our own money which in it self a hard task and can not be fulfilled or completed by someone who is so irresponsible. But harsh reality to this fact is we are still dependent on banks as we can not avoid them unless we have direct physical p2p traders whom we can trade face to face but most of the people do not even think about it and second is those who have access to BTC ATMs.

Bitcoin gives us unprecedented freedom from traditional banking institutions. However, we stay in these structures because they're convenient or necessary. I know this issue is two-sided.

The "bankruptcy of banks" you mentioned demonstrates a huge problem in our financial systems. Like a safety net with holes, you may get caught but not always. Compare that to autonomous, scarcity-based Bitcoin. The ability to govern Bitcoin is both its strength and vulnerability. Control is a burden not everyone can handle. This may explain why many have been slow to adopt BTC.

BTC ATMs and peer-to-peer trade arent the norm yet, but they might be. Its like giving a car-only driver a rocket. Cool idea, but hard to navigate. Change takes time, so additional education and infrastructure may help close the gap.

[Dr.Bitcoin_Strange]

If you want to read the crazy experience I also had with the financial institution that I am banking with, then you can read this thread. Basically, there are some drawbacks to most of those centralised organizations. Bitcoin helps to cover some of those drawbacks, and that's why it's wise if some non-Bitcoiners out there can realise how advantageous it is to use Bitcoin. Also, in the banking system, the annual percentage yield on investment is usually small compared to how profitable Bitcoin investment can be even in a short period of time, but that's if the market is bullish.

[karabiber]

The main advantage of using Bitcoin is that it is both a digital currency and a payment network. Bitcoin's blockchain would not work without BTC and vice versa. In such a system, Bitcoin can operate without any government authorities and other intermediaries or regulators. Bitcoin is the first successful implementation of p2p money without borders, allowing anyone, no matter who they are or where they are, to freely store and exchange value.

Bitcoin is a transparent financial system and you can make transfers to anyone and anywhere 24/7 even if the banking system collapses. International money transfers are faster and easier than the banking system. You don't have to pay big costs. Bitcoin is anonymous and anyone can open their wallet online without any verification or credit history. It's especially useful in underbanked areas and in third world countries where most people struggle to access money. And i would say that Bitcoin is the most portable asset ever created. Bitcoin has many advantages over traditional banking, and i think that as it reaches more people over the years, the demand for local banks will decrease.

[YUriy1991]

Basically there are numerous benefits which BTC provide us over local banks and fiat. For example in fiat we have the benefit of hedge against inflation, we can store our valuable assets for longer term while securing the value. Fiat has to be secured some where safe if kept physically and if in banks then choice of banks must be good like bankruptcy of banks is not something uncommon.

Point is, the benefits are a lot but to keep the importance of BTC short I can say I am agree with your factors but there are more on the list like scarcity, decentralization, anonymity etc.

You basically defined all the basic flaws banks and local currency have while BTC do not have them. In BTC we have the full control over our own money which in it self a hard task and can not be fulfilled or completed by someone who is so irresponsible. But harsh reality to this fact is we are still dependent on banks as we can not avoid them unless we have direct physical p2p traders whom we can trade face to face but most of the people do not even think about it and second is those who have access to BTC ATMs.

Bitcoin gives us unprecedented freedom from traditional banking institutions. However, we stay in these structures because they're convenient or necessary. I know this issue is two-sided.

The "bankruptcy of banks" you mentioned demonstrates a huge problem in our financial systems. Like a safety net with holes, you may get caught but not always. Compare that to autonomous, scarcity-based Bitcoin. The ability to govern Bitcoin is both its strength and vulnerability. Control is a burden not everyone can handle. This may explain why many have been slow to adopt BTC.

BTC ATMs and peer-to-peer trade arent the norm yet, but they might be. Its like giving a car-only driver a rocket. Cool idea, but hard to navigate. Change takes time, so additional education and infrastructure may help close the gap.

Maybe after realizing that In the end, Bitcoin may not be an undisputed digital currency even though trends can always change or reverse, but the invention of Bitcoin has changed the world today I think. Yes. with Proper money management then applied correctly in a strong trending environment, theoretically it will generate a huge ROI and BTC is the answer.

[Marvell1]

Financial freedom is not the same as financial security. Bitcoin gives you control, but its value is not stable, it's not backed by something that you can predict. Bitcoin showed great performance in the past, but there is no proven model that can guarantee same performance in the future. Or even good performance. You can say that fiat can crash too and be right, but any asset can crash. So the key to managing wealth is diversification between many different uncorrelated and reliable assets, instead of going all in on one thing.

Bitcoin has many advantages over fiat currency but you are right, there is no guarantee for the future and everything has risk whether it is bitcoin or fiat currency, even gold, an asset that is considered is the safest. Diversification is the best key when it comes to finance, focusing on a single asset is too risky because no one can predict what the future will hold.
But the thing is, even if bitcoin is better than fiat, superior to fiat, we still need fiat money for our lives. So in my opinion, there is no need to compare the two because we need both, both have different use cases.

[kryptqnick]

A wallet app can glitch or have its issues as well, but if it's a non-custodial wallet, at least one can access the funds using another option. That being said, there are many centralized crypto services, and people are often okay with keeping their money there, even though it's very similar to holding it in a bank. In this case, access can be restricted, and control over one's funds is limited.
As for the cost efficiency, I think that really depends on a country and a bank. I pay zero maintenance fees in my country, and many transactions have zero fees as well. Some have a fee if it's in between different types of accounts and/or different banks, but I often pay more in Bitcoin transaction fee than that.
And there's a major disadvantage of using Bitcoin over using a local bank in terms of a mode of payment, as I can use a debit card for 95% of my transactions because it's accepted almost everywhere, but to use Bitcoin one needs to look for specific places that are friendly to it.

[Winterfrost]

I have done a summary analysis that reflects Bitcoin is more efficient, especially when it comes to international transaction. Making fiat international transactions could take a day or two but maximum five days before receiving it. But when it comes to bitcoin you only need some network confirmations within 10 minutes and you have receive your bitcoin. This still shows how banks have control over you and your money. But with Bitcoin, it's different, as the infographic explains in an easy way.

[rachael9385]

Since Bitcoin is centralized, the price of Bitcoin has been oscilatt sometimes, although it turns out to be for good to the benefit of many people, and that's why it's been adopted in almost some of the biggest countries in the world. But as for Fiat, you can live it for thousands of years without touching it and it won't decade and it doesn't fluctuate at all, it is just for the economy to either be good or bad.

The advantage Bitcoin has over Fiat is plenty (way too much) but there is risk and I say, a lot, that a lot of risk profits most, since you can use Bitcoin as a payment method in any business you do, you can also use it in any part of the world you are with p2p and the funny part is that you can't use your country's fiat to purchase anything outside your country, but you can use Bitcoin anywhere you go, as long as the receiver or the sender have good knowledge about Bitcoin transactions. Finally, one reason why Bitcoin is risky is because you can't predict the accurate outcome of it.

[Kakmakr]

Yes, my bitcoins are accessible 24/7 for 365 days in a year.... other than centralized services that cannot help you outside of office hours, when you run into problems with your Banking Apps or your ATM cards.  

I can also have my bitcoins in Paper wallets, where I am not paying "fees" for someone else "securing" my money.   Also, something that very little people know, is the fact that there are not enough money in the Banks for everyone to withdraw their money, if there are some crisis. (In Greece... Banks closed their doors and put limits on people's withdrawals during a Bank run .... so people could not withdraw their own money)  

[CryptoHeadlineNews]

Embracing Bitcoin represents a step towards financial liberation, where you determine the fate of your money, not faceless or third party institutions. for those out there who still have doubts about Bitcoin, I think it's high time you reconsider where you place your funds. Bitcoin, with its decentralized and transparent nature, is a compelling choice.

And in addition to what you just said, the fate of your money can always be directly proportional to how conscious you are to your own personal security, whereby you using the right Bitcoin non-custodial wallet, keeping your seed phrase safe, and refusing to buy BTC without an escrow or from Facebook group/Telegram channel where they promise to sell coins at a cheaper rate, for you to resell and make profit, as lot have been proven to be potential scam, whereas newbies have always been a major victim due to their level of ignorance. Because it is only when you are conscious to your own personal security, that you can only have absolute control, unrestricted access, cost-efficiency, and finally reaping the fruit of your investment capital after a long period of time.

[traderethereum]

But unfortunately, not all countries or businesses want to use bitcoin.
They may still be afraid to use bitcoin because of government regulations, so they still use international transactions.
That makes us still use local banks for transactions even though we often experience disturbances when we want to make transactions.
And until then, we can use bitcoin as a valuable asset and keep collecting more bitcoins.

[mindrust]

Bitcoin has lots of advantages over FIAT. First of all, bitcoin is decentralized and that means you can send and receive bitcoin without asking a permission from anybody. With FIAT, banks decide if you can make a transaction or not. They can cancel you out of the system any time they want. They did it to the truck drivers in Canada. They can do it to you and if you don’t behave well. FIAT has some advantages too though. FIAT is accepted by any merchant in the world. (International or local) Crypto still has a long way to catch-up with FIAT. Maybe 5 years from now, things will change more in favor of btc.