Crypto vs. Fiat:
6 Reasons Why Crypto Is the Better Investment
Cryptocurrency has gained an incredible amount of attention over the last few years, and for good reason. It’s a fundamentally stronger type of currency than fiat currencies, whose values are backed by governments… and as a result, people are flocking to invest in it.
Let’s break down the reasons why:
1. The cost of use is cheaper for crypto than fiat.
Every time you have to drive to the bank or pay a transaction fee, you’re paying through the teeth just for the privilege to spend money. It’s absurd when you really stop to think about it. Not only that, but the person or entity you transfer the money to is also paying, whether it be in gas money or fees or even in time. (Time is money!) Cryptocurrencies carve out that entire level of bloated bureaucracy, saving the user untold amounts of money in the long run. Sure there may be network transactions and certain fees associated with the networks, but when all is said and done, it pales in comparison to the cost of traditional methods.
2. Fiat is cumbersome and outdated; crypto is speedy.
How long does it take to make a large financial transaction through a bank? Despite all the technological advances in computers inside of the last few decades, banking is still plagued with the most dreaded pastime: the waiting game. In today’s fast-paced world, wait times in line for the teller, sitting in a banker’s office, tapping your fingers at home waiting for a transfer to go through, all these things feel behind on the times. This is especially accentuated when juxtaposed with cryptocurrency, where you can simply transfer $150m at the drop of a hat and nobody makes you go through eight different tellers and the bank manager before they’ll approve it.
3. Crypto is fundamentally more secure than fiat has ever been or ever will be.
For the uninitiated, the blockchain tech that fuels cryptocurrency is a system of decentralized ledgers, linked and secured cryptographically. What makes it so secure is the decentralization; every computer that participates in the blockchain (in this case, every person who uses a certain crypto) becomes a permanent record of transactions on the chain. Any person attempting to change a block in that chain would have to change it on a majority of those computers — that’s thousands and thousands of changes needed to overwrite data, whereas fiat currencies hold their data in centralized locations. It’s much easier to attack one location than it is to attack thousands.
4. Cryptocurrencies will help users where fiat currencies have fallen short.
With the advanced security that comes along with cryptocurrency, we’ll see a drop in issues like fraud and identity theft. No more credit card charge-backs. Cryptocurrencies are entirely digital, and can’t be counterfeited, or arbitrarily reversed by the sender. Where credit cards fundamentally operate by taking (the transfer only occurs when the designated recipient initiates payment), crypto operates by giving, meaning that you send exactly what you want, when you want, with no outside authority whatsoever.
5. Where fiat gives power to governments and financial institutions, crypto gives power to the people.
Think of cryptocurrency like the Robin Hood of financial empowerment. Fiat currencies are forever controlled by the governments that back them and by existing financial institutions. Cryptocurrencies exist beyond the control of third parties, functioning as decentralized systems where every block in the chain holds the same level of power. Not only is it more secure that way, but it takes the financial authority away from a central figure in a way that has not been possible before the technology existed.
Now that it is possible, who would ever want to go back?
6. Crypto has a certain future, while fiat has an uncertain one.
Take the US dollar for example. After the value of USD was disconnected from the ‘gold standard’ in the 70s, trillions of dollars were printed to fund the federal government, an inflation which led to the value of the dollar dropping by 99%.
Meanwhile, cryptocurrency is airtight in the places that fiat has always been weak. That’s what has the public’s rapt attention more than anything. Just nine years ago not a single cryptocurrency existed, and now millions of dollars are traded through crypto every day. The promise of cryptocurrency is bright. The world grows faster and more secure every day, and crypto is the currency designed to keep up with that environment.
Fiat is outdated in the modern world. Better to put your money into the future — into crypto.
