Fiat currency has served societies for many years through different eras and economic cycles. From Nigeria to America, billions of people around the world put their trust in fiat money to live. In more recent times, however, Bitcoin has given a growing number of people around the world reasons to believe it is better than fiat.
Bitcoin, while a lot newer than fiat money, has met the needs and demands of record numbers of people in new ways. With its superior transfer speed, security, and a growing number of use cases, it has earned a prominent spot in the global economy.
There are several factors that make Bitcoin better than fiat. Factors affecting the price of Bitcoin include:
₿ Bitcoin has more use cases than fiat
₿ Most fiat currencies lose their value in the long-term
₿ Bitcoin is not disproportionately controlled by one individual
A great example of Bitcoin’s superior qualities can be found in South America where Bitcoin has managed to (in many events) break all-time highs against the Argentine Peso and Brazilian Real. In both nations, economic challenges have clawed away at the value of fiat money.
As the first cryptocurrency created, Bitcoin has set the trend for programmable money. Programmable money allows for humans to use technology to determine the value of money. With money being programmed, use cases of money can be more varied. For example, the Bitcoin network can be used to create smart contracts that allow for seamless transactional relationships between people and organizations.
The fact that Bitcoin is not controlled by one individual means that users of the cryptocurrency have less to worry about in relation to their control over their accounts. While a traditional bank or lender may have disproportionately high influence over the costs associated with holding an account, a user of Bitcoin has less to worry about due to the security of cryptocurrency.