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.

[Hazink]

You made some strong points about financial freedom and self-custody, and I agree that Bitcoin represents a fundamental shift in how we think about money. However, beyond the philosophical angle of “hard money vs weak money,” it’s also important to highlight some technical and economic aspects that strengthen Bitcoin’s case.
First, Bitcoin’s monetary policy is not just limited — it is credibly neutral. The 21 million cap is enforced by thousands of independent nodes globally. Unlike fiat systems where policy can change based on political or economic pressure, Bitcoin’s issuance schedule (halving every ~4 years) is transparent, predictable, and resistant to centralized influence. This predictability reduces monetary uncertainty, which historically has been a major cause of wealth erosion in fiat systems.
Second, Bitcoin removes counterparty risk in a way traditional finance cannot. When you hold fiat in a bank, you are essentially holding a liability of that institution. With properly secured self-custody Bitcoin, you are not relying on a third party’s promise — you control the private keys, and therefore the asset itself. That distinction is critical, especially during banking crises or capital controls.
Third, Bitcoin’s decentralization is not just ideological — it’s structural. Mining is geographically distributed, nodes can be run by anyone, and the network operates 24/7 without interruption. Even if one country bans it, the network continues. That level of resilience is something no fiat system can replicate because fiat currencies depend on centralized state infrastructure.
However, for balance, we should also acknowledge that Bitcoin adoption still faces challenges: volatility, scalability limitations on the base layer, regulatory pressure, and the need for better user education on self-custody. Solutions like the Lightning Network are helping improve scalability and transaction costs, but mass adoption requires ongoing development and responsible usage.
In summary, Bitcoin is not just “anti-fiat” — it is a new monetary architecture built on transparency, decentralization, and mathematical consensus. Whether someone sees it as digital gold, a hedge against inflation, or a censorship-resistant payment network, its innovation lies in removing trust from the system and replacing it with verifiable code.
The real question is not only why Bitcoin is better than fiat — but whether society is ready to transition from trust-based money to verification-based money.

@lovesmayfamilis, should we call this one name impersonation or what should it be regarded it as if not for the rank and the AI wall of text? I could have been convinced I’m reading a comment written by you. Quilibot marked the comment by the user as 100% AI generated.