Tech & Auto

Is The Fiat Money In Danger Due To The Growing Popularity Of Cryptocurrencies?

Published on: 27/04/18 5:00 PM

It costs around $8,918 today if you want to buy it now. It is the Bitcoin that has become the symbol of cryptocurrency across the globe. People see it as a magical coin but it is one of many cryptocurrencies. This cryptocurrency was traded for only $0.0001 during 2009.

Nobody could believe that one day Bitcoin will register record-breaking exploits. The growing cost and popularity of this cryptocurrency making people wonder that how long the fiat money will be relevant? Let’s find out the answer.

What is the difference between Fiat money and Cryptocurrency?

People vastly use fiat currency because cryptocurrency is new. Though both are currencies, a few things differentiate them. Let’s check the difference.

Summary

  • Fiat currency:

It is legal tender currency, issued by the government. The fiat money can be in physical forms such as dollar bills, coins, etc. The banks are also providing customers with credit cards and debit cards so that the consumer can use their fiat money electronically. The supply and flow of the fiat money are controlled by the banks and governments.

  • Cryptocurrency:

Bitcoin and ETC are the best examples of the cryptocurrency. Now you can call them global currencies because cryptocurrencies are decentralized and used all around the globe. Though cryptocurrency is not legal tender, it is more valuable than fiat money at the present time. The supply is controlled by an algorithm that makes it a limited form of digital currency that holds quite a large value.

Why Cryptocurrency is more beneficial?

Summary

Cryptocurrency would be the future currency, that’s what every individual thinks now. Well, that is true because people do not want to disclose all their financial activities. There are a few benefits that make cryptocurrency very beneficial for every user across the globe.

  • No chance of fraud:

Once the sender has made a transaction on the blockchain, he cannot reverse it arbitrarily. Such incidents often take place when people make the payment with their credit cards. The Cryptocurrency offers an exceptional protection against the fraudulent elements.

  • Anonymity:

You may think like it is safe to use the credit cards but you might be risking quite a lot than just a few dollars. The merchants get access to every detail associated with your card and credit history. You may not like to disclose your name every time whenever you are making transactions. Only cryptocurrencies like Bitcoins and ETH offer such facility. No need to provide additional information excepting the amount you want to transfer.

  • Low transaction fee:

Do you remember how much extra do you pay whenever you pay through your credit card? It will be a large amount if you sum up all the payment processing fees. There is no such issue with the Cryptocurrency. The transactions take place within a few seconds. There is no centralized body that controls the flow of Cryptocurrency. It means, no extra charges and no waste of time.

Can cryptocurrencies actually replace the fiat money?

All of these features prove that Cryptocurrency is better than the fiat money.  It is possible that most of the people will switch to the Cryptocurrency because of all the given features. Billionaire Tim Draper has said that fiat money will be laughable within the next five years. Of course, fiat currencies will not go out of use completely but people won’t rely too much on it for their regular needs.

To answer the main question, yes fiat money in danger. People don’t want to pay transaction fees and they also do not want to disclose their involvement in some transactions. The fiat money does not offer such appealing features and that’s why the answer to the main question is Yes!!!

 

 

About the author

Garima

Passionate about writing and believe in the power of dreams and hold the courage to make my dream happen in reality.

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