Last Updated on February 28, 2021 by Filip Poutintsev
The right type of control
The way the FIAT money system is created is that no one knows exactly the total market capitalization and where all funds are located currently. But on the other hand, the government, with the help of banks and other financial institutions watch very closely how much money each individual holds in his account. This leads to an unfavourable situation where the common people are under control, but the system itself is not.
With Bitcoin, the control is done exactly the opposite way. The system is under control, and everyone can check at any moment in which wallets all Bitcoins are located and their total count. At the same time, all wallets are anonymous, and no one knows who owns them. This is the perfect example of the right control, where the system is being controlled, but the people are not.
Safe: You own your own money
With Bitcoin, you own our own funds, and no one can take them away from you. Unlike with FIAT, banks cannot freeze your account and government cannot confiscate your funds. This is a crucial aspect of the modern world where the government often uses its monopoly over money to extort and punish people. Bitcoin brings economic freedom back to the people.
Unlike traditional monetary system, Bitcoin is 100% transparent. Anyone can review the blockchain and the code to see that it works properly and does what it claims to do. All dishonest actions of by anyone, including the authority, will be instantly noticed and stopped. This is the reason why counterfeit Bitcoins and corruption inside the system cannot exist.
No printing money
Because the total amount and the creation speed of Bitcoins are set and cannot be changed the government or any other party cannot print Bitcoin for free as it does with FIAT money. This aspect completely removes inflation that is also known as theft from common people and puts an end to dishonest government fundraising campaigns by printing new money, mostly used to finance war or other harmful or illegal endeavours.
Decentralized = Government-proof
Let’s face it: governments are the biggest threat to humanity. Governments (along with state-run religious organizations), not private citizens or corporations, have committed most of the crimes throughout the years. In the 20th century, alone governments killed 262 million unarmed people, which does not count all the people killed in the war, which will probably add around 100 million more. That’s hundred times more than all criminals gangs, mafia, serial killers and common murderers combined.
When you know this fact, you will realize that a typical murdering rapist is more philanthropic than a typical government. This is why people have to be protected from governments with all means possible. Bitcoin guarantees economic freedom to the people, as Bitcoin cannot be tampered by anyone, including the diabolical government.
Capitalism and the free market at it’s best
One thing people find it difficult to understand is why Bitcoin costs as much as it does. Everyone familiar with the stock market understands that the price of Bitcoin and the price of the stocks are determined based on demand and supply. In short, the more people believe in the idea of Bitcoin and want to invest in Bitcoin, the more it costs.
The exchange rate of Bitcoin is the purest example of capitalism, where no 3rd party can regulate nor affect the price. Bitcoin is an example of a fair market that existed in the dawn of civilization, but sadly today is rare.
If a merchant wants to accept card payments, he has to buy or rent card reader, make an unfavourable agreement with a bank and pay around 3% in fees. With Bitcoin, you need a smartphone or PC and a free wallet. Bitcoin is a lot easier for businesses, and you do not depend on a bank or credit card company to suddenly revoke your agreement or chargeback payments.
No more economic crises
The leading cause of economic crises is our defected monetary system that is based on debt. Whether it’s hyperinflation, the bankruptcy of the banks or just uncontrolled spent on government funds, the root cause is always the same. As Bitcoin is not based on debt, and you cannot just print money out of nothing, 90% of all economic crises will be avoided by using Bitcoin.
BONUS: Exchanging Bitcoin to FIAT is just a temporary phase
It’s true that currently, it’s often difficult to exchange Bitcoins for FIAT. Yes, you can sign up to hundreds of different crypto exchanges and exchanges your money there for minimal fees. Still, for that, you need to go through the painful verification process and then get interrogated by your bank. And if you select an easier exchange method, like Bitcoin ATM/teller or face-to-face with another Bitcoin user, the fees often raise to 5%, which is pretty high.
However, the thing is that exchanging Bitcoin to FIAT it just a temporary phase of a period when both crypto and FIAT are mainstream and in circulation. Very soon, possibly within 10-20 years, most consumers will abandon FIAT and completely switch to Bitcoin. At that point exchanging Bitcoin to FIAT will no longer be necessary as one will be able to use Bitcoin everywhere. Even today if you look hard, you can buy everything with Bitcoin, and in the future Bitcoin will be as common as using a credit/debit card.