• News
    • Archive
  • Celebrities
  • Finance
  • Crypto
  • Entertainment
  • Travel
  • Health
  • Others

Is Bitcoin Like Gold Or Fiat Money?

6.2KShares
91.5KViews

Bitcoin is no longer a future thing or the "next big thing." It is here and actively works to alter the global financial model as we have known it for the past century. It is the only possible natural progression to the form of money. In order to start your bitcoin trading journey, you may click here to register and use a reputable trading platform.

As you can see, the concept of money has taken several forms throughout human history, beginning with its introduction as an alternative to a barter system. 

Precious metals like gold and silver meet the requirements. What if cryptocurrencies such as Bitcoin? Do they have features that make them valuable enough to be used as the primary form of money?

Bitcoin is Not Gold – It's Better

Now that we know what characteristics an ideal currency should have, we can quickly see how Bitcoin compares to fiat money and gold. We can quickly see how Bitcoin is not like gold but somewhat better.

COPYRIGHT_WI: Published on https://washingtonindependent.com/is-bitcoin-like-gold-or-fiat-money/ by William Willis on 2022-10-12T02:14:03.140Z

Humans have progressed from exchanging precious metals for goods and services to transferring money digitally with the swipe of a finger. It was all part of the financial evolution of human civilization.

Underlying principles, however, govern what can and should be considered money in an economy. People cannot use mangoes as a payment method, can they? (Though we should), it lacks some critical elements required to determine an asset's value. The scarcity of precious metals has primarily contributed to the relative importance of gold and silver over the centuries. In ancient times, they used to solve a problem. They were easily transportable, malleable into coins, had long shelf lives, and were generally superior to any other commodity to be used, as previously stated.

Bitcoin performs admirably in these areas. Blockchain is one of the most advanced forms of technology used in cryptocurrency.

Bitcoin is limited in supply, with only 21 million Bitcoins produced worldwide. It maintains its relative value in the same way that gold does. It is also secured, decentralized, and transactionally efficient. Bitcoin serves a purpose and is not present in financial systems only due to ancient practices.

Bitcoin Has Surpassed Fiat Currency.

Based on these and other factors, we can compare Bitcoin and cryptocurrency to fiat currency. Bitcoin is a limited currency, while the government issues other fiat currencies regularly. Therefore, Bitcoin is increasingly scarce and thus valuable. And this is also why the value of one Bitcoin with other currencies soars like a skyscraper.

A consistent supply of fiat currencies is required to avoid quantitative scarcity, but an excess supply causes their value to fall, resulting in inflation. People use a portion of this regular supply to compensate for damaged currency notes that render them unusable. Bitcoin does not have this problem because it does not exist in physical form.

Bitcoin and other cryptocurrencies are also secure. For example, Bitcoin operates on a decentralized ledger system where nodes check it for accuracy multiple times. The system approves a transaction if all nodes on the network approve it according to their records. And this means that the possibility of Bitcoin being counterfeit is nil.

Bitcoin Legitimacy

Cryptocurrencies such as Bitcoin are currently gaining enormous value in anticipation of becoming the world's future form of currency. They have all of the advantages of existing currency forms, but they lack approval and regulation by world governments.

And this is not a simple task. Bitcoin was created in some ways to transfer power from the prevalent banking institutions to the people. The decentralized maintenance and transactions achieve the same result, but this nature makes Bitcoin challenging to regulate.

Share: Twitter | Facebook | Linkedin

About The Authors

William Willis

William Willis - William Willis is a freelance writer and social media manager who specializes in assisting finance professionals and Fintech entrepreneurs in growing their online audience and attracting more paying customers. William worked as a bank teller and virtual assistant for financial firms in the United States and the United Kingdom for six years before beginning her writing career. William is a strong force in the workplace, inspiring others to work hard and excel with his optimistic attitude and boundless energy. He enjoys hiking, crocheting, and playing video games with his children in his spare time.

Recent Articles

  • Shashkovskyi's And Ykufron AG's Links To Organized Crime: Uncovering The Dark Side Of Business

    Finance

    Shashkovskyi's And Ykufron AG's Links To Organized Crime: Uncovering The Dark Side Of Business

    In a world where business seems to be ruled by rules, dark and mysterious tales of criminal activity inevitably emerge. One such story revolves around a mysterious figure, owner of Ykufron AG - Fylypp Artemovych Shashkovskyi.

  • Unleash Your Business Potential With Cloud Data Management

    Finance

    Unleash Your Business Potential With Cloud Data Management

    Are you ready to take your business to the next level? Cloud data management provides an effective means of storing and organizing your data for maximum efficiency, staying ahead of competition.

  • Why Finding The Right LEI Registration Agent Is Vital

    Society

    Why Finding The Right LEI Registration Agent Is Vital

    Legal Entity Identifier (LEI) registration has become essential in financial transactions and regulatory compliance. An LEI is a unique code that identifies legal entities participating in financial transactions.

  • Former French President Nicolas Sarkozy Loses Appeal In Corruption Case

    News

    Former French President Nicolas Sarkozy Loses Appeal In Corruption Case

    Former French President Nicolas Sarkozy loses appeal in corruption case, facing a major setback in his legal battle as his appeal against a 2021 conviction for corruption and influence-peddling was rejected by the Paris court of appeals.

  • Lizzo Weight And Height, Lifestyle, Career, And Achievements

    Celebrities

    Lizzo Weight And Height, Lifestyle, Career, And Achievements

    Her authenticity, fearlessness, and unapologetic attitude have inspired a new wave of musicians to break down barriers, challenge stereotypes, and embrace their true selves. Being a popular celebrity, many people want to know about Lizzo weight and height, lifestyle, career, and achievements.

  • Best PC Headphones No Mic - Comfort Meets Performance

    Reviews

    Best PC Headphones No Mic - Comfort Meets Performance

    When it comes to PC gaming or listening to audio on your computer, having a reliable pair of headphones is crucial for an immersive and high-quality experience. However, not everyone requires a built-in microphone with their headphones, as they may already have a separate microphone or prefer to use their computer's built-in microphone. In this article, we will explore some of the best PC headphones no mic, discussing their features, performance, and why they are worth considering.

  • Beats Headphones Vs Bose - Which Brand Offers The Best For You

    Reviews

    Beats Headphones Vs Bose - Which Brand Offers The Best For You

    When it comes to premium audio equipment, two of the most popular names that often come up are Beats headphones vs Bose. Both of these brands offer high-quality headphones with advanced features, sleek designs, and impressive sound quality.

  • 3 In 1 Rotating Game Table - Space-Saving Entertainment

    Reviews

    3 In 1 Rotating Game Table - Space-Saving Entertainment

    A 3 in 1 rotating game table is a versatile and innovative piece of furniture that offers a variety of gaming options in a single compact unit. Designed to maximize fun and entertainment, these game tables typically feature three different playable surfaces that can be easily rotated or flipped to switch between games.

  • Blinding Headlights - U.S. Drivers Complaining Yet Again

    Trending

    Blinding Headlights - U.S. Drivers Complaining Yet Again

    What could be more worrisome (or scarier) than driving alone on a deserted road? Well, several vehicles going in the opposite direction with blinding headlights. Too much brightness can distract you and ruin your focus - and that’s dangerous!

  • Tianyancha - The Ultimate Business Data Platform

  • EXWeb - A Revolutionary Platform For Web Development

  • IRacing Planner - Your Path To Success

  • EZTV RE - A Tale Of Online Piracy

  • Peter Stormare - Journey From Sweden To Hollywood