Is Crypto Really Better Than Fiat?
With the ever growing popularity of crypto adoption, it is becoming increasingly common to have that friend constantly talking about crypto and how he/she is always saying crypto is better than the paper money you use every day.
Read on to see how crypto does hold an advantage over Fiat in a number of ways.
Crypto vs. fiat currency
Fiat currencies — also known as paper money, legal tender. It is a kind of currency that is backed by the issuing government and sometimes also backed by gold. Relatively stable during peaceful time but fluctuates a lot during turmoil. Although not common but can be targeted for attacks, for the curious minds — look up George Soros and the British Pound.
Cryptocurrency is a relatively new financial invention. A wildly quoted and accepted definition of cryptocurrency is a digital or virtual currency designed to work as a medium of exchange. It uses cryptography to secure and verify transactions as well as to control the creation of new units of a particular cryptocurrency. Essentially, cryptocurrencies are limited entries in a database that no one can change unless specific conditions are fulfilled.
To date, there are over 5,000 different cryptocurrencies in the world with Bitcoin ranking number one in terms of market capitalization.
Advantages of crypto over fiat currency
Decentralized economy or decentralised finance are terms that get thrown around all the time and it simply means a financial system without a centralised governing body, in this case, the Central Banks.
The way crypto works without a Central Bank is that the central governing body has evolved into the blockchains and nodes that verify each and every transaction that enters the blockchain. The transactions are kept in the public ledger forever, longer than banks wold keep bank records.
Security and Privacy
Anonymity is a feature only crypto can offer. With the use of cryptocurrency, your identity, personal details are hidden even to the transacting party. It is a level of anonymity fiat currencies cannot offer.
This is not to say that there is no consequences and it is also the reason why a reputable platform like Bitprive always uphold a high KYC standard in order to protect you and other users. Learn more about our KYC in the FAQ section.
Transfers and remittances done with fiat money often takes a lot longer than cryptocurrency transfers. For Fiat currencies, depending on your originating and destination countries, the transfer can take up to weeks and done with multiple banks as middlemen.
With cryptocurrencies, there is no off hours, no bank holidays, is available to everyone everywhere, anytime as long as you have internet connection. Transfers can be done in an instant. This is also partially the reason why there is a huge uptake of cryptocurrencies in places where the banking infrastructure is subpar.
Low transaction fees
With speediness usually comes a higher price. In the sense of using cryptocurrencies over fiat currencies, not only using crypto us faster, it is also usually cheaper since fiat transfers require a lot of intermediaries such as your bank, the other bank and in some cases some intermediary banks. Every hoop is transactional fees for you.
Cryptocurrencies eliminate those fees since you’d only need both parties to have a wallet to complete the trades. With the huge adoption of crypto, wallet services are usually free nowadays. Visit our Bitprive FAQ to learn more about our fees and out wallet services.
About Bitprive (BPVE)
Bitprive is a Blockchain startup focusing on developing a regulated global cryptocurrency OTC marketplace with 180+ popular payment methods in the world.
Verified users can list buy and sell offers on the Bitprive platform for multi-cryptocurrency trading with a wide range of digital and physical payment methods. On top of providing the platform technology and matching services, we also provide the BitEscrow Network where crypto is held in our Bitprive hot wallet before the payment is confirmed. Once the seller confirms payment, Bitprive releases the crypto from the BitEscrow Network to the buyer’s Bitprive wallet.
At Bitprive, we value security and efficacy.