Using Bitcoin Over Dollar - Essay Example

There are many reasons why Bitcoin is not only superior than dollar at present but also a better option than the fiat currency for the future.

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While there are countless reasons to choose the digital currency over the traditional money, only the top reasons have been discussed here.

The amount of U.S. dollars in circulation is increasing continuously. This is bad as the number of dollar increases, the worth of each dollar decreases. Ultimately this leads to inflation of about 5% every year.

On the other hand, Bitcoin is anti-inflationary global currency. There is a limit on how many Bitcoins can be in circulation. The number will not exceed 21 million in total.

Considering the USD inflation, investors need to diversify with alternative stores of value like bitcoins. The chart below shows the evolution of the USD Purchasing Power, from 1913 to 2013. In one century, the US Dollar lost 95% of its real value.

Based on the standard supply and demand economic concept, this raises the value of the crypto currency. When more people join the Bitcoin ecosystem, its worth per unit increases.

Another major advantage with Bitcoin is its speedy transactions. Moving dollar physically, using the traditional banking system takes up a lot of time.

Paper money can take hours to be delivered at the destination of choice while the digital currency is received over the internet almost instantly. You also have to face ridiculous and suspecting questions at the bank if you will to transact high amount of money.

It is obvious how Bitcoin costs of transfer beat that of Dollars. If you wanted to wire a large sum of money, you would have to go to a bank, fill forms and complete several other procedures. This would also entail bank fee too and would take several days.

If you transfer the money using Bitcoin, you can simply send the money to the receiver’s QR code. You can transfer any amount. You will have to pay a “centibitcoin” and have the transaction will be completed within 10 minutes or less.

One of the major concerns when dealing with money is security. The chances of losing physical money are much more than losing money which is on the internet.

Bitcoins are digital money in nature and so you can back up and save your bitcoins to a separate server. You can do this on computers, passcodes, and paper wallets, protected by multi-sig, offline vaults, brain wallets and cold storage.

There are so many security options for Bitcoin users to choose from that the chances of loss are minimum, since you use the right operator or procedure.

Bitcoin seems to have a much brighter future than dollar. The interest rate for dollar is almost 0 and countries try to avoid it these days. Bitcoin is an innovative concept and a promising future is expected.

Bitcoin is basically better than dollar because it has higher appreciation rate, no inflation rate and minimum costs associated with transactions. The entire process is user-friendly.

Bitcoin may be a digital currency but the privacy settings with the systems are very good. It is much safer to carry Bitcoins than dollars. Finally, the future of Bitcoin feels much better than the future dollar has in store.