Benefits of Bitcoin over Fiat

[DanWalker]

The benefits of bitcoin is not to be compared with that of fiat, if not for the fact that we spend Fiat in our day to day expenses like buying of food stuffs and house bills and others, I don't think of any benefits that fiat could give to use and currently some countries have started using bitcoin as a method of payment so you can see that fiat is gradually becoming worthless. I believe with time people will no longer consider fiat as a thing I think the government is the one stoping this from happening because if the government of all the countries will agree to make bitcoin legal, every individuals will want to hold bitcoin instead of fiat.

Holding fiat for extended periods and in large quantities may not be good for us. However, fiat offers many benefits and plays a more important role in the economy than you might think

You need to understand that our economy can survive and operate stable way largely thanks to governments and central bank. Without their intervention, from raising and lowering interest rate, providing liquidity, controlling inflation, and limiting the spread of the crisis, do you think you could have survived? And without fiat, do you think they could have done that?

Fiat is designed to circulate and stimulate the global economy, it is not designed to be held as a store of value like gold or bitcoin. They play different role in the economy, so dont compare them and make superficial judgments based on just a few aspect of an asset.

[OcTradism]

Holding fiat for extended periods and in large quantities may not be good for us. However, fiat offers many benefits and plays a more important role in the economy than you might think

You need to understand that our economy can survive and operate stable way largely thanks to governments and central bank. Without their intervention, from raising and lowering interest rate, providing liquidity, controlling inflation, and limiting the spread of the crisis, do you think you could have survived? And without fiat, do you think they could have done that?

Fiat is designed to circulate and stimulate the global economy, it is not designed to be held as a store of value like gold or bitcoin. They play different role in the economy, so dont compare them and make superficial judgments based on just a few aspect of an asset.

Holding fiat currencies can not help people getting richer from holding at home or in banks for receiving bank interests. It's because the inflationary rates of fiat currencies are higher than interest rates and consequently purchasing powers of fiat currencies lose faster than what people get from interest rates with their bank saving accounts.

With Bitcoin, as proven by its price since 2009, there is a very parabolic price growth that brings very good profit for people who hold bitcoins in years. A longer time they hold bitcoins, a better profit they will receive in longer term.

Gold is a good store of value and can help getting good profit too but gold has a longer cycle length than Bitcoin. If people want to get profit with gold, they must hold gold a longer time than holding bitcoin.

[TastyChillySauce00]

Deflationary because of limited supply is the best feature bitcoin has, it basically put bitcoin up there as a good money way above majority of fiat and the thing that attracted people into holding bitcoin as much as they can.
Always feels good having a currency that can grow its value overtime instead of holding fiat with guaranteed inflation rate every year, on top of that you get to fully control your money because its real self custody.

[TokenTikas]

Gold is a good store of value and can help getting good profit too but gold has a longer cycle length than Bitcoin. If people want to get profit with gold, they must hold gold a longer time than holding bitcoin.

Yes, Gold coins have been around since ancient times and when you compare that with bitcoin’s journey, you can clearly see how fast bitcoin has progressed. Even though gold is very old, making profit from it usually takes a long time but bitcoin has shown again and again that it can give a good amount of profit within a much shorter period.

But the way people think now is different from how people used to think before. For example, no matter how much I try to explain bitcoin to my parents, they don’t really trust it because from their generation till now, they see gold as the safest way to store value. In the time we are living in now, many of us are giving more priority to bitcoin than gold and if you look at bitcoin’s history and understand it well, it feels like bitcoin deserves more preference. Gold has been around for a very long time and if bitcoin had that same long history, it would probably be even more popular today and accepted legally in most countries just like gold.

[AmaGold70]

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

Investing your money in bitcoin is incomparably more beneficial to keeping your money in fiat currency. Bitcoin is a store of value, which means the more you leave your money in bitcoin, the more it grows in value over time. Unlike the fiat currency that is being manipulated by governmental policies and faces depreciation.
It is necessary to know that any money kept in the bank is likely to loose value. The bank charges you even when you did not make any transaction, and your money continue to devaluate as inflation creeps into the economy.
Bitcoin grants it's users privacy and total control of their money, making it possible for it's users to initiate transaction at any point in time and at their own convenience. The traditional currency makes things very cumbersome for it's users, and as such there is no confidence in holding fiat currency.

[henry_of_skalitz]

Deflationary because of limited supply is the best feature bitcoin has, it basically put bitcoin up there as a good money way above majority of fiat and the thing that attracted people into holding bitcoin as much as they can.
Always feels good having a currency that can grow its value overtime instead of holding fiat with guaranteed inflation rate every year, on top of that you get to fully control your money because its real self custody.

You get control which won't go away and the currency that isn't controlled by those that don't hold your interest closer to themselves than their own 

[UchihaSarada]

Investing your money in bitcoin is incomparably more beneficial to keeping your money in fiat currency. Bitcoin is a store of value, which means the more you leave your money in bitcoin, the more it grows in value over time.

It's a predictable result for your investment and your portfolio but it's only achievable if you can hold your bitcoin a very long time like one or two market cycles.  In order to hold your bitcoins for four years or eight years, you will have to manage your finance well so that you will not touch and sell your coins earlier than 4 years or 8 years.

This is only achievable if you only use your discretionary income for purchasing bitcoin as you already reserve other money parts for other spending for yourself and your family. If you don't manage your finance and investment capital well, you will almost unlikely be able to hold your coins for 4 or 8 years.

[betswift]

Investing your money in bitcoin is incomparably more beneficial to keeping your money in fiat currency. Bitcoin is a store of value, which means the more you leave your money in bitcoin, the more it grows in value over time.

It's a predictable result for your investment and your portfolio but it's only achievable if you can hold your bitcoin a very long time like one or two market cycles.  In order to hold your bitcoins for four years or eight years, you will have to manage your finance well so that you will not touch and sell your coins earlier than 4 years or 8 years.

This is only achievable if you only use your discretionary income for purchasing bitcoin as you already reserve other money parts for other spending for yourself and your family. If you don't manage your finance and investment capital well, you will almost unlikely be able to hold your coins for 4 or 8 years.

The main thing is to have a good income and have enough willpower to diversify a bit into BTC, without it causing the investment process to crash down due to needing to cash out during it.

[dezoel]

I really can’t elaborate on the benefits of bitcoin over fiat because both currencies are unique in their own way and they both play different roles.But in my own opinion,bitcoin has been beneficial to the society and in terms of financial freedom bitcoin hasn’t failed.Traditional banking systems would freeze your money or even pause your transaction without a reversal in most cases,creating room for customers to go to the bank in other to rectify what the matter may be,all these are possible due to the power of centralization.But with bitcoin that runs in a decentralized system those attributes aren’t found.

Nobody says fiat has nothing over bitcoin, but one thing bitcoin has over fiat that makes people prefer bitcoin; total control.

Governments control their fiat, which means they make it less valuable with their horrible decisions, like USA attacking Iran out of nowhere, costs oil price to go up, which makes other things cost more, which means inflation, which means dollar is less valued, one decision by one person and dollar goes down.

Nothing like that happens in bitcoin, while it may go down at times, it always recovers and goes up.

[Abiky]

Holding fiat currencies can not help people getting richer from holding at home or in banks for receiving bank interests. It's because the inflationary rates of fiat currencies are higher than interest rates and consequently purchasing powers of fiat currencies lose faster than what people get from interest rates with their bank saving accounts.

With Bitcoin, as proven by its price since 2009, there is a very parabolic price growth that brings very good profit for people who hold bitcoins in years. A longer time they hold bitcoins, a better profit they will receive in longer term.

Gold is a good store of value and can help getting good profit too but gold has a longer cycle length than Bitcoin. If people want to get profit with gold, they must hold gold a longer time than holding bitcoin.

Saving Fiat doesn't make sense due to the high inflation rates. It's why some people have turned to stablecoin lending. Especially, USD-based stablecoins. You'll get a much higher yield than just saving your money at a bank account. Not even CDs are worth it. At least, most of them. Only a few have high APY rates.

With Bitcoin, the rewards are even higher. But it also comes with a high risk. Balancing between BTC, stablecoins, and alts would allow you to achieve true peace of mind. Despite Bitcoin's "benefits" over Fiat, it will never manage to replace it because governments will never allow it. Fiat will co-exist with Bitcoin for generations.

[Floxynice]

Right now when the currency of my country is facing serious devaluation, one seriously needs to be thankful to Satoshi for such an invention that hedges against inflation and serves too as a  good store of value. While freedom is still very good, it will still be meaningless if bitcoin behaves like fiat that is usually severely affected by inflation and deflation.  Critics can say all they want, but I strongly know bitcoin is doing better

[Mame89]

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.

Yes, that's right. Comparing Bitcoin with Fiat is certainly fruitless, as Bitcoin is far superior in every way. Just from the image shown it's clear that Bitcoin is superior to Fiat. Moreover, in terms of decentralization and centralization we can already conclude that Bitcoin is superior.

This can be said to be about the security and transparency possessed by both Fiat and Bitcoin. Bitcoin is protected by strong cryptography and an immutable blockchain. All transactions are transparent and verifiable by anyone making it difficult to counterfeit. Fiat on the other hand is physical money which is easily counterfeited. Furthermore, a bad banking system can easily print money and banks also run the risk of bankruptcy or freezing our funds. So, in terms of privacy Bitcoin is superior.

Another advantage is that Bitcoin cannot be counterfeited, there's no need to carry physical currency and it's not damaged. Another benefit of Bitcoin is that it's cheaper and faster for international transactions, especially in the digital age making Bitcoin more efficient than fiat.

[Jaycoinz]

When the government and it is acting according to its "playbook" and even before bitcoin money and a lot of things have been used in place of the paper money we know today which is losing spending power and being printed so the average person has to work harder for the same amount. so in this case bitcoin as a method of payment so you can see that fiat is gradually becoming worthless.

The whole system is a matter of time, I feel a time is coming that the relevance and important of Bitcoin can't be ignored at all because there would be no way that the government can over look to the fact that the fiat inflation would have turned a thorn in the flesh well if only they don't benefit and thrive from all the inflation that the Fiat currency causes because the government themselves seems to be the core engineers of this whole inflation rise.

[Byebyebtc]

I do agree with you
Especially the fact that Bitcoin is a deliberate choice for financial freedom.

Meanwhile...
We should not just move into Bitcoin totally because of how fait can be annoying and unstable, yes I know Bitcoin is like a safe house to store money, but we should also have to be calculative and also have understanding of how Bitcoin is,
We should know very well about the risks involved and how well to manage the state of the coin in times of dip.

Not because of how fait money is, you then run to Bitcoin without good knowledge and calculations, something will work better if well calculated and understood.

[Felicity_Tide]

All these benefits are very rare to find in other system, but the three key beneficial differences  that have always stood out for me are : Deflationary - inflationary, owned by you - controlled, and 21M cap - Unlimited printing. It is very sickening to see how the government keeps piling up debt upon debt while it still doesn't reflect in the economy and lives of the people. We literally can't even tell exactly how much they're printing on a dialy basis because those records are deem confidential even though the impact is always catastrophic in a long run.

Same Institutions question and limit average citizens on withdrawals even though the money belongs to the person requesting. If I hadn't experienced any of this myself, I probably wouldn't be replying to this thread. Honestly, It's good to have an electronic cash system like Bitcoin. Bitcoin doesn't actually cover the loopholes in the already existing system, but it gives us all an option, and not just an ordinary option, but a better one.

[ZAINmalik75]

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.

But they are doing the same with Bitcoin now, no doubt that it is a hedge against inflation and protects our wealth in the long term, but few things that caused financial crisis in 2008 like debt mismanagement, it can occur in here too because companies like MSTR are taking loans, and buying bitcoins, they are taking collateral loans on their bitcoins profits to take more loans to invest again in the same asset Bitcoin. This is risky but they are doing it, and they even said that if Bitcoin dumps to $25k, they still won't have to sell a satoshi.

We have created few people the main source of impact, like it was in centralization, those in power mis use it to manipulate the prices like Trump, we did it. Also due to the institutional money incoming hot in crypto, it is now related to the movements of etfs and stocks, if they dump then bitcoin will dump.

[Minor Miner]

Despite Bitcoin's "benefits" over Fiat, it will never manage to replace it because governments will never allow it. Fiat will co-exist with Bitcoin for generations.

Yes, the government would never let that happen. But the reality is that completely replacing fiat with bitcoin and running the economy on it would not improve condition. That would make the economy even worse.

It is no coincidence that the world abandoned the gold standard and replaced it with fiat. An economy under the gold standard is a restrictive economy, difficult to grow and prone to recession. The same thing would happen if Bitcoin became the sole currency of the economy.

[Abiky]

Yes, the government would never let that happen. But the reality is that completely replacing fiat with bitcoin and running the economy on it would not improve condition. That would make the economy even worse.

It is no coincidence that the world abandoned the gold standard and replaced it with fiat. An economy under the gold standard is a restrictive economy, difficult to grow and prone to recession. The same thing would happen if Bitcoin became the sole currency of the economy.

Governments decided to "ditch" the Gold Standard in favor of Fiat, just so they can manipulate the economy to their own will. You can't "print" something as scarce as Bitcoin or Gold. Inflation is sometimes more of a feature than a bug. Without it, the economy can keep rolling like it's supposed to. You can see why people often hoard Bitcoin more than they use it. Deflation encourages people to hold, as they expect higher prices in the long run. The inverse happens when there's inflation.

Both Bitcoin and Fiat have their respective advantages/disadvantages. Depending on your needs, will be the form of money to use. I'd balance between the two for complete peace of mind. Hopefully, Bitcoin lasts for generations.

[SquirrelJulietGarden]

Governments decided to "ditch" the Gold Standard in favor of Fiat, just so they can manipulate the economy to their own will.

The gold standard was abandoned globally with big strategic decision from the USA but since then, over many decades, there is a thing that has been unchanged, money printing by governments through central banks. Consequently, fiat currencies have been more covered and flooded the world and fiat currency purchasing power only declines with time. With or without gold standard, this declining trend is the same because money printing has not been stopeed.

https://www.usdebtclock.org/world-debt-clock.html

You can't "print" something as scarce as Bitcoin or Gold. Inflation is sometimes more of a feature than a bug. Without it, the economy can keep rolling like it's supposed to. You can see why people often hoard Bitcoin more than they use it. Deflation encourages people to hold, as they expect higher prices in the long run. The inverse happens when there's inflation.

Both Bitcoin and Fiat have their respective advantages/disadvantages. Depending on your needs, will be the form of money to use. I'd balance between the two for complete peace of mind. Hopefully, Bitcoin lasts for generations.

Gold and Bitcoin are safe heavens for people who want to achieve both targets: saving their money against inflation, and building up their wealth with time. Both gold and Bitcoin are very good for achieving both targets but these assets have different market cycles so holding time for profit must be very different, shorter with Bitcoin and longer with Gold.

This book has good insights about Bitcoin, gold and their strengths against fiat currency.
https://vijayboyapati.medium.com/the-bullish-case-for-bitcoin-6ecc8bdecc1

[tread93]

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

Its funny man my uncle in law the other day stopped me at like a memorial thing like on the way out and chimed in "your bitcoin is dying a slow death" out of nowhere literally as we were walking in opposite directions and I kind of just shook my head. Its always been volatile but honestly people who are not buying or earning more somehow right now are just part of a group of the ignorant. How many times can we go around the same corner and not expect to see a huge mountain peak on the other side?