Why cryptocurrency Bitcoin is better than fiat currencies in some ways? Nowadays, more and more people are attracted by cryptocurrencies,
and
bitcoin,
as
the
chief
cryptocurrency, is the first and best choice for most people who are interested in crytocurrency, and they think that bitcoin is better than fiat currencies in some ways. Why do they think like that? How Bitcoin is better than fiat currencies? Here are the four reasons for that.
1. Manipulation-free system
The issuance mechanism of Bitcoin introduce a creative concept which is to issue money solely depends on a system,not depends on some councils or panels of man in power.
In Bitcoin system, the number of currency is capped at 21 million and the speed up producing a Bitcoin is 10 minute,which can be automatically adjusted by the system in the way of controlling the difficulty of the mathematical question. Mechanism of this sort can, in theory, make the inflation or deflation rate more predictable and controllable, for the time of mining and the money we can produce is fixed. People may argue that if the rates is predictable, then why are we always bombarded by the news about the fast-changing value of bitcoin on the front page? Well, it’s truth that the Bitcoin price is so volatile that it is common to see the price plummets to $1,000 lower in a single week. And the current price of Bitcoin stands at $6,885.45 USD, close to the cost level,$6,000.
But it’s only true when we single out the problem caused by the mechanism and problems from the outside world. It’s the speculative activity on Bitcoin that drives the price up and the changing relative policies that make the price move unpredictable. But very few slump or surge in price are caused by the mechanism itself. It’s, in theory, a manipulation-free inherent system.
2. Faster and more efficient transaction process
Bitcoin is initially created to act as an alternative of fiat currency, so it does functions as a medium of change on the blockchain. As for the blockchain is run without border, so users are allowed to transfer their money to any country in the world within seconds without paying too many transaction fees, which also significantly streamlines the whole procedure. Remember what I said in the beginning? It’s good but not perfect. Some of the advantage I mentioned above can be the stumbling blocks to Bitcoin on its way to
become a really currency. 3. A manipulation-free system in technical terms only As I mentioned above, the Bitcoin system can prevent money manipulation in the technical level, which means that it’s less likely for other to intervene the money producing process.But it’s not that useful when it comes to the real world, for there is money manipulation method in the human world. The system prevent money control activity technically to steady its money supply, while miners or money traders can easily control the amount of money in circulation simply by shorting or siting on the coins if he or she is holding lots of amount of tokens or computing powers.
4. A decentralized money supply system that needs intervention
People applause Bitcoin and blockchain technology for it prevent intervention from the top so we can avoid Zimbabwe’s dilemma. However,sometime intervention is necessary under certain conditions. For instance, when the country heads towards deflation, it needs governments to increase the money supply to speed up the economy again, in other words, the currency money supply system is a flexible system that can control the money supply based on the economic condition.However, when it comes to Bitcoin, the money supply speed and the amount of is fixed. However does it work when we need to control the economy by changing the money supply?
Source from: https://www.quora.com/Is-the-cryptocurrency-Bitc oin-a-good-idea/answer/Vincent-Chen-304?prompt _topic_bio=1