Last updated on June 19th, 2023 at 08:17 am
Here’s Why Bitcoin, Ethereum, and other Digital Coins are better than Fiat Currencies
Warren Buffet calls the electronic coin ecosystem a bubble—he doesn’t seem to fancy digital coins because they neither have inherent value like commodity monies (gold coins, for instance) nor stability (cryptocurrencies are volatile).
But with a simple, honest, and objective look at the good side, everything else seems to blur out (even if we decide to pretend not to know the obvious downsides of conventional currencies).
It is not by chance that cryptocurrencies are the trend today despite not being globally considered legal tender. On many fronts, electronic coins have quite the edge.
Here are seven reasons why electronic coins are better than conventional fiat currencies:
- Safety and Security
- Ease and Seamlessness
- Transparency and Record-Keeping
- Investment Options
Recall that electronic coins (cryptocurrencies) are as much a medium of exchange as conventional currencies. Like paper money, they are used for indirect trade. However, they take a slant, in that they are virtual.
Electronic coins are mined through encryption and decryption technology (cryptography), making them nearly impossible to hack, alter, or counterfeit. This digital process robs financial institutions and governments of their centralized power, seeing they don’t issue, control, or manage this sort of money.
This has to be first on the chart when talking about the importance of electronic money over fiats. Whatever system puts the power over money in the hands of the general public (everyone is no one, I guess) certainly cuts down on charges, third-party intrusions, exposure to risks, and excessive government control.
Perhaps financial independence is now being redefined in the most off-government possible way.
- SAFETY AND SECURITY
Electronic coins rule out the need for intermediaries per transaction—no known or unknown third-party intrusions. With your private key, you alone can access your balance for transactions of any kind.
Your transactions are timestamped and recorded on the blockchain through a public record of account called “distributed ledger technology”. No one can defraud you, and neither can you defraud anyone. You can’t give out an already-used value, and no one can send you counterfeit or already-used money.
The blockchain system generates private codes that keep any prying network or computer from breaking in to facilitate or influence transactions.
Electronic coins are intangible elements, as malleable as clay soil. They can take up many forms without having to walk into any banking hall or exchange shop.
All you need is a (virtual) cryptocurrency exchange to buy, sell, or convert from one coin or currency to another in no time. They’re like water, changing forms and shapes as they’re scooped from one container to another. With conventional fiat monies, you must worry about the bureaucracy that comes with changing money from one currency to another, exchange rates and charges, etc., but such isn’t the case with digital coins.
All you would be needing to change crypto coins is an exchange platform and an internet connection from anywhere.
- EASE AND SEAMLESSNESS
By now, this should go without saying. For God’s sake, this is the only electronic system that puts your money under your absolute control and management, cutting the bottleneck that goes with using intermediaries. And hell, what digital system isn’t faster, easier, and more seamless than traditional methods?
- TRANSPARENCY AND RECORD-KEEPING
Because digital coins keep your data secure through cryptographic technology, uninvited parties are entirely kept out and the system stays clean and see-through, right within your range. Transactions are also timestamped and stored in a public ledger for all involved parties to see.
Conventional ledgers and records may not detail the facts, especially on the side of one of the involved parties—the digital coin ecosystem hops over such a ditch.
The fact that digital coins, regardless of the kind, can be used as currency from any part or country of the world is one of my biggest financial turn-ons. The world of digital coins may have many currencies, but they’re all valid representations of money, none being restricted for use within one country.
- INVESTMENT OPTIONS
Digital currencies are indeed volatile (they shift in value pretty significantly, even within a short time). But it is also true that millionaires and billionaires have been born in the process. With the right electronic coin investment strategy, you stand a chance at raking in profits through short-term and long-term cryptocurrency trades and investments.
IMPORTANT: Any opinion in this post is solely that of the blog contributor. Discretion is advised—what readers choose to do or how they decide to invest after reading this post is entirely up to them, at their own risk.