Why Cryptocurrencies are better than fiat money

More and more people are becoming interested in digital money and using it in everyday life.

Monetary instruments

Currently, fiat money is the only instruments that officially participate in monetary turnover with the state. Cryptocurrencies are not a universal tool at the moment and will remain risky as long as the financial literacy of the population and knowledge of information technologies are at a low level.

The currencies of developed countries are stable and reliable, because the state acts as their guarantor. The currency of the state must be accepted on the territory of the country and in the bank of any country for the exchange of free currency.

But now cryptocurrencies can be exchanged, for example, on the Every year cryptocurrencies become similar to the currencies we are used to.

Although fiat is a reliable tool, it has a number of disadvantages. These are the lack of anonymity, exposure to inflation, despite the stability of the currencies of developed countries, tracking of funds transfers by states and the risk of freezing bank accounts.

How is cryptocurrency better

The main advantages of the good cryptocurrencies are its speed and cheapness of transactions, the absence of barriers when transferring funds to foreign accounts, as well as full ownership of the asset. If an investor can lose his fiat money by freezing a bank account, then this will not happen with crypto assets. No one has the right to take them away from the owner. They have a high degree of anonymity.

Cryptocurrencies are a new direction in the economy, thanks to them new financial services are being built without being tied to central banks.

Entry threshold

Every year there are more owners of cryptocurrencies, people buy it and store it on crypto exchanges without using specialized wallets. The entry threshold is getting lower, crypto wallets are being built into smartphones and in the distant future, perhaps cryptocurrency will even replace fiat money.

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