Benefits of Bitcoin over Fiat

[Nathrixxx]

We must be reminded the reason why we choose to go for bitcoin after being tired of the traditional financial system in government control financial regime and seek for alternative, as choosing bitcoin is not by mistake, but an intended aim to help us have control over our finances and manage the economic situation by ourselves without involving third parties or any centralized regulatory entities under government or individuals.

It was clear that we needed this freedom in handling our financial economy and this cannot be granted by the government except we take it by ourselves, this is why we embrace bitcoin over any other form of traditional currency that exists, because we want a cheaper cross-border transaction fee, privacy, and trust to handle our finance is all by ourselves.

I was able to come across this online while browsing and think it could also serve as a reminder to some of us about the benefits of bitcoin adoption against fiat, I hope we can be able to grab some information from the image illustration below.


link

[Rashlyowl]

Sometimes newbies can misunderstand the deflation that exists in BTC. My bros once asked me that he saw information on the internet that said BTC was deflationary, he continued the conversation by concluding the BTC supply could decrease, like 21,000,000 to 20,000,000 someday. I then responded by saying that his understanding was wrong, BTC deflation is not like classical economic theory, deflation in BTC refers to its design, 3 examples are:

(1) Limited supply.
(2) Inflation level is getting lower & lower over time.



(3) Possible shrinkage of effective supply.

Estimating the Number of Lost Bitcoin

As of early 2025, analysts estimate that between 2.3 million and 3.7 million Bitcoins are permanently lost, (Source: Chainalysis), representing approximately 11–18% of Bitcoin’s fixed maximum supply of 21 million coins, with some reports suggesting losses as high as 4 million BTC (Source: Fortune). This impacts the effective circulating supply—while the total mined Bitcoin stands at around 19.8 million BTC, the usable amount is closer to 15.8–17.5 million BTC after accounting for these losses, highlighting a significant reduction in accessible coins despite the unchanged maximum supply of 21 million BTC.