4 Differences Between Bitcoin and Government Fiat Currencies
1️⃣ Scarcity Bitcoin is a scarce asset, whereas the supply of fiat currencies is controlled by the government. We have witnessed how abundant fiat currencies have become in the last two years
2️⃣ Peer-to-Peer (P2P) Bitcoin transactions are peer-to-peer and operate on a network that doesn't stop, fail, or rely on a single central authority. Fiat currencies, on the other hand, can be easily seized by the government because they are centralized.
3️⃣ Proof of Work (PoW) Bitcoin relies on proof of work. This means that when you own Bitcoin, it represents the work and energy expended. Fiat currencies, however, represent power. The strength of the US dollar, for example, becomes evident when you face crises.
4️⃣ Blockchain Bitcoin transactions are transparently recorded on the blockchain, visible to everyone at all times. Fiat currency transfers, however, are not transparent and can only be viewed when authorized by central authorities. This transparency enables us to make informed decisions based on on-chain data.
✅ CONCLUSION The world is undergoing a significant transformation, and I believe that at the center of this transformation lies MONEY.
Inflation will continue to be a problem for the next 20-30 years because central banks will continue to print money to bail out failing companies. When they don't print money, people suffer, and everyone bears the cost. Therefore, I believe investing in solid assets (with limited and predictable supply) is the right choice for long-term investment.
