A Fiat currency is a currency that countries have declared to be the official currency of that country, such as the American Dollar or the British Pound.
The reason Bitcoin and other cryptocurrencies are becoming popular is because they have several advantages over Fiat currencies.
It has been reported that Sweden is about to launch its very own cryptocurrency, other governments will be watching this development with interest. There are many advantages to developing cryptocurrencies so…
Lets take a look at what these advantages are.
Decentralisation.
this is a massive plus, this imply means that no nation government or bank has control of the currency and no single person or institution has control over the Bitcoin network. No one can manipulate its supply as this is strictly limited by the mining to 21 million coins. Fiat currency can be printed at will to increase the money supply, this is technically known as quantitate easing!
Ease Of Use
Far easier to do than opening a traditional bank account, its is very easy to open an online wallet, if you use a coin exchange then you may well be required to use some form of ID such as a driving licence or passport to verify your account.
Transaction Speed
Your tradition bank does not work on a 24/7 basis. So if you are sending money or receiving money over a weekend then you will be subject to a delay to receive your funds.
As Easy As Using A Bank Card.
As Bitcoin is an electronic payment system, you can use a paper wallet, a Bitcoin plastic card, an online wallet or even a hardware wallet to receive and send Bitcoin payments. This is common in developing economies where a large percentage of the population do not have a traditional bank account.
No Big Bank Fees
The reason that banks do not like Bitcoin is that they cannot take a fat fee every-time there is a transaction, that stings. Bitcoin transaction fees are very low so you get to keep more of your cash instead of giving it to the “The Faithful Family Retainer,” the bank.
As you can see there are plenty of good reasons to consider cryptocurrencies. Furthermore some of the technologies used in the development of the Blockchain technology, will start to be used for other purposes.
So let me ask you a question. Have you considered investing in Blockchain technology?