Bitcoin and fiat currencies are both forms of money, but they have some key differences that make BTC a potentially better option in certain situations.
One of the main advantages of Bitcoin over fiat is its decentralization. Because BTC operates on a peer-to-peer network and is not controlled by any central authority, it is resistant to censorship and interference. This makes it a good option for individuals and organizations that value financial privacy and freedom.
Another advantage of BTC is that it is a scarce resource, with a finite supply of 21 million coins. This scarcity is built into the protocol and cannot be changed, unlike fiat currencies, which can be subject to inflation and devaluation through monetary policy decisions. This scarcity gives Bitcoin value as a store of wealth and a hedge against inflation.
Bitcoin is also faster and more efficient for cross-border transactions. Bitcoin transactions are processed on a decentralized network, which means that they can be completed without the need for intermediaries like banks. This can save time and reduce fees for international transactions.
Additionally, BTC is a highly transparent system, all transactions are recorded on a public ledger called blockchain, which allows for easy tracking of transactions and can reduce fraud and corruption.
However, it’s important to note that BTC is still a relatively new and volatile technology, and it may not be suitable for all individuals or situations. It also lacks the widespread acceptance and infrastructure of fiat currencies, which can make it more difficult to use in everyday transactions.
In conclusion, Bitcoin has some advantages over fiat currencies, particularly in terms of decentralization, scarcity, and efficiency, but it’s not a one-size-fits-all solution, and it’s important to consider the specific needs and circumstances of each individual or organization before making a decision.
Can we as the bitcoin family really live solely on bitcoin?
We as The Bitcoin Family, a family of 5, have chosen to live primarily on BTC and use it as our primary form of currency. We believe in the value and potential of Bitcoin as a decentralised and scarce digital asset, and have chosen to use it in our daily lives as much as possible. We also use other forms of cryptocurrency, as well as other forms of money like cash and debit cards.
Living solely on Bitcoin would be a difficult task, as the cryptocurrency is not yet widely accepted as a form of payment for goods and services. While it’s true that the number of merchants accepting Bitcoin as payment has grown over the years, it still has a long way to go before it becomes a mainstream currency.
Additionally, many goods and services are not yet available for purchase with $BTC. For example, paying taxes, bills, or rent with Bitcoin is not yet possible in most places. This means that individuals who choose to live solely on $BTC would need to find work that pays in Bitcoin, or find a way to convert their Bitcoin into fiat currency when necessary.
In short, it is challenging to live solely on BTC, as it is not yet widely accepted as a form of payment, and many goods and services are not yet available for purchase with it but we as The Bitcoin Family like any other cryptocurrency enthusiasts, have proven for the last 6 years that it is possible to live unbanked and thus live the bitcoin standard!