Bitcoin vs dollar
Satoshi Nakamoto created Bitcoin in 2008, and many have assumed that it is the answer to the traditional financial system, which this year suffered one of the biggest crises in history. In this article, we will look at how BTC differs from the dollar and how it should solve the traditional economy’s problems.
Bitcoin is rightfully the best way to preserve capital. This statement is true if the coin owner does not panic and does not sell the asset. Will Bitcoin Preserve Your Capital in the Future? Most likely, yes, but this is just a forecast. Bitcoin’s annual lows are growing every year, which speaks of the leading cryptocurrency as the best defensive asset. The dollar has never been able to preserve your capital, as it is constantly «eaten» by inflation.
The dollar loses value over time because its quantity is constantly increasing (especially when the US government begins to support the economy by printing new banknotes). Bitcoin has a graph of declining inflation. It means that 1 BTC will be more valuable in the future. But deflationary currencies also have their downside: they motivate people to save rather than spend. Also, it can impede economic growth.
BTC is a digital currency and can be split in to as many decimal places as needed. Currently, you can buy one hundred millionth Bitcoin. It is the smallest unit and is called satoshi (1 satoshi = 0,000,000.01 BTC). It is much better than the dollar because it can be divided into only one hundred parts.
Degree of acceptance
By this parameter, TC is still very far from Bitcoin. Not many people will refuse a hundred-dollar bill, and in some places on our planet, they have not yet heard of Bitcoin. The Bitcoin network is growing, but the dollar is still very far away.
Resistance to counterfeiting
Bitcoin counterfeiting is actually impossible, as other network participants constantly check all blocks. On the other hand, the dollar also has many security features, but it is much easier to counterfeit. Moreover, if a person can accept a suspicious banknote, then the computer will not allow this.
How to destroy a digit on the screen? No way. Bitcoins are as durable as their owner needs. If the only copy of the key is on your computer and you throw it away, then those BTC «die» along with the hard drive. And to destroy the entire network, you have to break all the hardware that runs the software. In comparison, the life of a one-dollar bill is only 18 months.
Perhaps this is the main parameter for comparing all currencies, which determines their prospects. Everyone will have their reasons to trust the dollar, and the same goes for BTC.
Several factors determine the qualities and characteristics of the ideal currency. Combined with philosophy and economic policy, the debate over which money is the best can be considered eternal. But if now investing in the dollar will bring you nothing but inflation, Bitcoin will help you save and increase your capital.
One of the best ways to invest in BTC is cloud mining with ECOS. Thanks to the company, you do not have to look for scarce equipment, buy and maintain it. You just need to register on the website or in the application and purchase a contract.