Post
Topic
Board Bitcoin Discussion
Re: Why crypto (bitcoin) is better than traditional money?
by
BlackHatCoiner
on 15/05/2021, 18:26:59 UTC
Now money can have limited supply, doesn't have to be inflationary
1. Bitcoin's supply cant be messed up
Total supply is finite and can not be changed by anyone else. It is 21 million BTC
Bitcoin's max supply is limited which makes it much more valuable than fiat money.
Bitcoin makes a good store of value with a limited supply of 21 million coins.



I see a lot of people bringing the Bitcoin's fixed supply as something “good” compared with the traditional money. While I'm a big hater of the way some governments inflate their currency and devalue people's money, I'm also not in agreement that using a deflationary currency is an advantage of the whole case. It's made in a way to be more valuable over time, but this is not how a currency should be like.

By knowing that my money will have a greater value in the future, makes me want to avoid spending it. So, by setting a fixed supply, you're instantly ruining the entire purpose of your currency. It won't be used as a medium of exchange, as it should be. Contrastingly, it'll be kept as a store of value asset and investment with the reasoning that it'll worth more in the future. On a healthy capitalization, money has to circulate.

Quote
Why crypto (bitcoin) is better than traditional money?
I wouldn't say that you can compare those two. They both satisfy different needs. Traditional money is needed, otherwise there is no state and hence, no society, while Bitcoin provides financial freedom. I don't know about you, but I want these two to co-exist.  Smiley