Bitcoin: Panacea for the Fiat.

Bitcoin has a significant role in this world over fiat to change the financial aspects of people with its blockchain technology and use cases. Bitcoin is a peer-to-peer online Cryptocurrency that is continuously growing in this modern era. Whereas our so-called Fiat is declining from its original value and controlling our money with a lot of restrictions when we need it most. For example, the war between Russia and Ukraine showed us how our Fiat became inaccessible during the war.  

Bitcoin vs Fiat

Bitcoin was created, according to Nakamoto’s own words, to allow “online payments to be sent directly from one party to another without going through a financial institution.” Whereas we deliberately need a financial institution to keep our money safe and most importantly transfer fiat from one person to another.

Bitcoin plays a pivotal role in this modern era to establish one of the modern giants in the field of finance against our traditional fiat. When Ukraine engaged in the war with Russia, Bitcoin emerged as a souvenir and was obviously accepted by Ukraine NGOs and Government which in turn utilized it to tackle Russia in the war. People started to think of Bitcoin as a viable asset over fiat which robs our money value over the period as inflation rises. The government can print fiat as much as it can which could result in hyperinflation but Bitcoin wins the race because it has a limited supply. The most crucial part of Bitcoin's existence is that it is decentralized in nature which people believe but fiat is controlled by Financial institutions with restrictions.

Scarce: 

Bitcoin's supply is fixed at 21 million; fiat is not. Since 2008, the Fed has tripled the U.S Monetary Base with its quantitative easing policies. 

Durable:

Bitcoins have been lost or stolen but never been destroyed. Fiat currency can be easily lost, stolen, or destroyed. However, the damaged bills can be replaced without loss of value. Without proper backup Bitcoins can be lost forever. 

Portable 

Bitcoins are digital, therefore can be transported over any distance with an internet/ data connection for free. It is relatively easy to transport cash up to a certain amount (i.e., wallet). However, more significant amounts can require infrastructure (i.e., armored trucks).  

Nowadays Bitcoin is considered "internet money" or "digital gold" which is highly encrypted and easy to transfer using Lightning Network to others anywhere in the world. Bitcoin attracts investors from the stock market millionaires all over the world. Even after Bitcoin has lost its undisputed dominance, it remains the largest cryptocurrency, with a market capitalization that surpassed the $1 trillion mark in 2021, after Bitcoin price hit an all-time high of $64,863.10 on April 14, 2021.

Many countries are striving hard to accept Bitcoin as legal tender over their fiat currency. El-Salvador a small country in Central America shocked the world by legalizing Bitcoin as a legal currency. The economists were astounded by the move even though IMF has nothing to do with this remarkable move. El-Salvador doesn't want to depend on any other organizations such as IMF because they want to move one step ahead in this digitalized world. This move might be harsh to the country in the beginning but ultimately brings yield at the end that is well known to everyone. 

   Unlike India is considering Cryptocurrencies as digital assets by implementing a harsh tax of about 30% and 1% TDS for the crypto community. This move was not expected from the country which is the second most populated country in the world. The Reserve Bank of India is keen on launching its digital currencies over cryptocurrencies. 

Why does the world need Bitcoin?

 The world economy tries to understand the technology behind cryptocurrencies, especially Bitcoin and explores regulating as a promising world-class digital asset. The exchange giants like Coinbase, Binance, FTX, and Kraken offer many services to their users for buying and selling Bitcoin for various users around the world. The popularity of Bitcoin among people is a never-ending story as they invest aggressively to accumulate as much as they can. Recently Binance exchange announced no fees for buying Bitcoin on its trading platform and many exchanges failed to do that.

Since its inception Bitcoin is Decentralized in nature which is why many investors like Microstrategy, Tesla, and Square are invested in it. Only China successfully bans its users from purchasing bitcoin. According to the data, Bitcoin has the same user percentage as when the internet had in the 1990s. Only 0.26% of the world population can buy Bitcoin, but it is still open to everyone.

The users of Bitcoin considerably growing as fast as the Internet users but Bitcoin will overtake after 5 to 10 years if it grows continuously. The Central Banks are afraid of Bitcoin's gigantic growth as they end up offering Bitcoin services soon or later. Be it a Bear market or Bull Market the adoption is inevitable.

As the adoption becomes inevitable, Bitcoin is unstoppable in the field of Decentralized Finance in this era. Not only Bitcoin but also ETH, BNB, USDT, and USDC hold a significant role in the field of cryptocurrencies. Satoshi Nakamoto the founder of Bitcoin believes in Bitcoin as the world endorses as he envisioned. The founder of Ethereum Vitalik Buterin is trying to merge Ethereum from Proof of Work to Proof of Stake which is a remarkable move that will reduce gas fees as low as 0.002$ in his tweet.     

Bitcoin has secured a prominent place in the modern era as well as people's thoughts. So it is gonna be the giant in the financial world as it never looks back or surrenders over fiat. Many countries tied up with blockchain companies like Polygon and Ada to promote education, universal fair election, distribution of products, etc.. Everybody cannot buy gold but everyone can buy bitcoin as long as they use a smartphone. Ukraine tops the list of Cryptocurrency users recently which again proved that even war-torn countries embraced Bitcoin. That is the power of Bitcoin no country can defeat it.  However many countries are trying to put the blanket on Crypto now but soon or later they end up adopting or legalizing Bitcoin over fiat. Bitcoin is the Panacea.