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.

archive

[CryptoYar]

Bitcoin was made specifically to give you total control over your money through system which is mathbased, and spread out, such that no government or bank can print more or tell you how to use it. Unlike old money, which loses value since governments can print too much, Bitcoin is limited to 21 million coins, which is asset that protects your wealth in long term.

By switching to Bitcoin, you are leaving system that is based on borrowed money and moving into new system, Freedom Money, that has cheaper global payments and privacy. At the current price of about $68,000, longrun buyers continue to buy more on belief that there is mathbased shortage in system as shown formula in photo, instead of the trillions of dollars of world debt that exists in regular money world.

[lovesmayfamilis]

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.

Are you serious?
Or are you experiencing vision problems? In that case, put on your glasses immediately!  I think I really stepped on someone's toes, and this bastard wants to get back at me. But you, Hazink, apparently are just waiting for the moment when there are fewer people catching cheaters. I think you're part of the group that's on their side.

[SeriouslyGiveaway]

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.

I like Bitcoin but I don't want to see it in any comparison as hard money vs weak money. Let's compare Bitcoin vs fiat currencies, that's it, and later in comparisons, we can compare biggest differences between Bitcoin and fiat currencies.

The bullish case for Bitcoin.
How is the 21 million Bitcoin cap defined and enforced?

Bitcoin is limited, fiat currencies are unlimited and can be printed or minted (with CBDCs) by governments. It's biggest difference between Bitcoin and fiat currencies in total supplies.
Other differences are decentralization, self-custodial, full control of your coins. No risk of censorship, seizure of bitcoin in your non custodial wallets.

Just these things are enough for me to choose Bitcoin over any fiat currency.

@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.

Why was the post quoted here?
I don't see the post in this thread, why it was quoted here, and I see it is like an off-topic quote.

I don't know where Hazink got this post from, it's a weird quote from Hazink.

Are you serious?
Or are you experiencing vision problems?

I don't know what Hazink posted.

[Nathrixxx]

@Hazink, please you guys should stay on course and avoid off-topic discussions here, you started it all and I don't see a reason why you should quote what was not being discussed here from another user to this thread, or was that also a mistake by you?

In case you are forgetting, what we are still discussing is the benefit of Bitcoin over Fiat, should in case any of you have issues or something in mind against each other, the best place to discuss that is the reputation board.

@SeriouslyGiveaway, I like your approach on this manner, Fiat shouldn't be approached as a weak money because that was what all of us at some point strongly depend on, not only that, is still directly or indirectly make use of Fiat even to this time on our daily activities, however, I think the reference to the image source got more naive to have used such tone in expressing their differences, which something better could have been used in place of fiat being a weak currency.

[fikrett]

Both have their use cases, but BTC can do what fiat cannot - and this gap will be bigger and bigger, imo, with fiat bloating and becoming overall.. more of a tool for control than it already is.

[Ucy]

Ofcourse, more emphasis should be placed on this and other principles, which in combination should be driving adoption, in order to avoid having too much people who choose bitcoin for the wrong reasons, filling up this space, while not caring too much about the direction it's moved to as long as they're making lots of money.
And freedom comes with lots of responsibilities, which is basically why Bitcoin is more suitable for people who deserve to be free and live safely on their own seperate system otherwise the governments will still be needed for control and security

[Fivestar4everMVP]

Both have their use cases, but BTC can do what fiat cannot - and this gap will be bigger and bigger, imo, with fiat bloating and becoming overall.. more of a tool for control than it already is.

You are right, there are alot of things we can enjoy from bitcoin that is not possible with fiat, but unfortunately, in this present generation we live in, bitcoin alone can't serve humanity without fiat and this is due to how the traditional monetary system have eaten deep into the lives of some people in our different societies..
I personally know of a lot of people who will never touch bitcoin until the pass on because they believe it's fake money, that is, their claim is that the money they can not see with their eyes and hold on their hands isn't original money but scam money..

This understanding i would say is born out of illiteracy but then it's still what it is and as long as this type of people continue to exist in our communities around the world, the need for fiat to continue to exist will always be there.

[Ishicryptic]

The benefits of Bitcoin is very clear and the clarity is getting bolder by the day, before now only a few people like the economists understands that fiat in the bank is prone to depreciation, your money in in the bank cannot be the same value in the next 10 years. It was the birth of Bitcoin that opened people's eyes that due to government's unlimited authority to print more money that their money is losing value as the supply increases. Bitcoin limited supply makes it a hedge against inflation to fiat and it's decentralization gives it's holders total privacy in a none custodial wallet, your Bitcoin is your property anywhere in the world. Most importantly Bitcoin is a store of value, a currency and asset that can give you profit if you hold for many years, this is however the major reason why people don't spend their Bitcoin they will rather hodl it and spend fiat.

[Patikno]

If we compare Bitcoin to fiat currencies, it is significantly superior. Besides the points outlined in the figure, I would like to add that Bitcoin cannot be counterfeited. We often see news reports about counterfeit money, even fake money that looks exactly like the real thing, and I find it very difficult to compare it with the real thing. Bitcoin, on the other hand, cannot be counterfeited at all; everything is recorded in a ledger, and no one can control it, whether by increasing or decreasing the amount. Therefore, Bitcoin is indeed the right choice for any purpose, including investment or as an alternative currency.

[Rgram]

Are you serious?
Or are you experiencing vision problems? In that case, put on your glasses immediately!  I think I really stepped on someone's toes, and this bastard wants to get back at me. But you, Hazink, apparently are just waiting for the moment when there are fewer people catching cheaters. I think you're part of the group that's on their side.

I clicked on the quote with hopes of being referred to the original post and thread of origin but, it seems to be none existent at this time which makes me question just how it got there or perhaps, the user to have imported this quote from wherever just wants to propagate some serious propaganda that would rub mud on the face of users to have being known to ensure and encourage healthy discussions on the forum. It’s so no right if that’s the case here and such shouldn’t be allowed either.

Where did Hazink lift this from?

Oh wow! I see in the archives referenced that a similar username was created for @Lovesmayfamilis and the characters ‘is” was substituted for “ys” just to make this closer to the original, this is wrong!

[Wakate]

There are so many benefits Bitcoin has over fiat currency and  that is one of the reasons why people are investing in Bitcoin because they do have to depend on bank everytime for their transactions to be completed due to the way banks are freezing their customers accounts due to various reasons. Bitcoin is decentralized while local currency is centralized. Bitcoin is not controlled by local or any government authorities. No regulation also.