How are cryptocurrencies better than fiat money?

Anonymity.

Everyone can see from which wallet to which one and for what exact value the transfer was made. But if you haven’t confirmed your wallet ownership in any centralized service, you will remain an anonymous user, and no one can reveal your identity.

Transaction speed and cost. International transactions.

Blockchain technology has launched the development of decentralized finance. In this sphere, the convenience of using any services, exchanges, and applications is extremely important. Therefore, with the development of the technology, blockchains appeared, allowing fast and cheap transfers, where the commission can be just a couple of cents. We can send coins to any users in the world, wherever they are. The key thing is access to the internet.

One of the most significant advantages of cryptocurrencies over fiat money is their decentralized nature, full ownership of assets, absence of regulation by the state and payment of taxes. This means that no one has the right to block your wallet with coins. You can send them to whomever you want and whenever you want.

Low barriers to entry for investments.

For example, if you want to buy one Amazon share that costs $2300, you have to pay the full price, you can’t buy half or a quarter of security. Cryptocurrency can always be divided into parts. The price of 1 bitcoin coin is impressive and is always changing. You can buy 0,001 BTC, which is roughly equivalent to $30-$60, and already start building your investment portfolio.

Tax payments.

Of course, the issue of paying taxes on income from cryptocurrencies is on the table. However, due to the complexity of cryptocurrency processes, regulators have not developed a truly proper tax system yet. And how can the government demand pay tax from a wallet address whose owner’s identity cannot be determined?

Limited issuance.

While ordinary fiat money always has a controller, in the form of the state, represented by the central bank, many cryptocurrencies have advantages over this.Let’s consider Bitcoin. A total of 21 million BTC can be mined, which means that no additional coins can be issued under any circumstances. We have already said that a miner is rewarded for distributing information into blocks, and for each new block he receives a fixed number of coins. To limit the issue, «Halving» was invented. This is the process of decreasing the miners’ reward by half.

History is replete with cases where users have lost their coin wallets. They can never be recovered again. The supply of cryptocurrency decreases every day, making it more scarce and increasing in value.

Our world is changing, and the financial industry is changing along with it. Today, blockchain technology provides a solution to most of the current financial system’s problems.

Never forget: There are risks in any type of investing! Be careful and trust only reliable sources!