Comparing Bitcoin to Fiat Currencies
(Photo : Comparing Bitcoin to Fiat Currencies)

In 2009 when Bitcoin first came on the scene, its creators mandated in the protocol that tokens would be limited to 21 million. To put things in perspective, bitcoin's current supply is around 18 million, the rate of its release reduces by half every four years.

Created Scarcity

Most governments maintain some flexibility over the supply of currency in circulation, which is usually part of their monetary policy, making adjustments according to economic variables. With Bitcoin, however, this does not occur. Similar to investing in precious metals, scarcity can help drive up the value of an asset. That being said, in the case of Bitcoin, this is likely to change as the 21 million limit approaches. The good news is, the last Bitcoin is not scheduled to be mined by the year 2140, which means there is plenty of time for you to make the most of your Bitcoin investments.

While you might think that the total number of bitcoins circulating is equal to that of fiat currencies, the former does have an advantage. Bitcoin, fortunately, is divisible up to 8 decimal points, with the smallest unit equal to 0.00000001. This enables Satoshi units to be distributed over a global economy. It is also important to note that the divisibility of a bitcoin is far greater than that of the US dollar or most other fiat currencies. On the other hand, the US dollar is divided into cents or 1/100 of a dollar. In comparison, one "Satoshi" is only 1/100,000,000 of a bitcoin.

Utility

The usage of blockchain technology has been one of Bitcoin's greatest selling factors. Blockchain is a decentralized and trustless distributed ledger system, which means that no parties involved in the Bitcoin market must create trust in one another in order for the system to function correctly. All this had been made possible thanks to a complex system of checks and verifications that is essential to the ledger's upkeep and the creation of new Bitcoins.

Convenience

Bitcoin can be easily transferred, regardless of transaction size, and at extremely low prices. This is mainly because of the advancements in cryptocurrency exchanges and crypto wallets. In comparison, the existing system's money transfer process can take a matter of days.

Security

Bitcoin and other cryptocurrencies have been built on Blockchain technology which is considered to be extremely secure. With the growing instances of cybercriminals attacking banks and investment institutions, Bitcoin investors can rest assured their Bitcoin are going to be better protected and safe from hackers. Furthermore, Bitcoin trading platforms use the latest security features and protocols to ensure the safety of their user's personal data.

Durability

It wouldn't be wrong to say that Bitcoin is far more durable as compared to fiat currencies. For instance, even if dollar notes are considered to be strong, they can still be torn or burned, which would make them useless. However, these common issues with fiat currencies don't impact digital forms of payment - like Bitcoin and its counterparts. Keeping that in mind, bitcoin can be considered to be extremely valuable mainly because it cannot be destroyed in the same way that the traditional fiat currency.

Seeing that more and more companies and businesses are opening up towards using Bitcoin for carrying out digital transactions, it is easy to see that Bitcoin makes for a smart long-term investment that is only going to grow in popularity with time. For those who are looking for a reliable Bitcoin exchange that they can count on, the Yuan Pay Group app is a great platform that comes with all of the resources one could need for investing in Bitcoin.

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