Let’s start from Crypto — it is decentralized, meaning you have true ownership over your funds. No one — not the government or other people — may forcefully take it away from you if you store it in a non-custodial wallet. Every blockchain offers a native wallet, which provides Fort Knox security to your funds at a fraction of a cost. Because crypto can be easily denominated into smaller fractions, fees can be paid in fractional values, like 0,005 — 0,00001 and so on, which is impossible with fiat money.
With Crypto you are your own surveillance system, which appeals to privacy-heavy folk out there. Every transaction is recorded in the blockchain, and cannot be changed or reversed. Blockchain here works as a registry for every operation, contract signing or dApp interaction. No one but you — by design — may access the funds inside a specific encrypted address in the blockchain and decide what to do with them.
«Decentralized» in crypto means that if a company goes bankrupt or people perform a bank run on crypto — it won’t fail. Multiple individuals, driven by a common vision of a bright future behind decentralized finances maintain the ecosystem. Every other crypto enthusiast keeps a fraction — or a full copy — of the entire blockchain in question: be it BTC which weights over 170 GB to launch a client or something lightweight like Cosmos. For a while, Ethereum blockchain was kept in the VRAM of thousands GPU’s across the world. These copies are synced on the fly, which keeps the system up & running.
Crypto actually cares about your vote or standing on a particular question. Because you — as a person — is treated as an equal part of the system, you can actually influence its development, unlike with fiat money, where you have no word on how it’s going to operate, ever.
Most importantly — crypto has no central authority, which prevents tyranny and usurpation of power in the first place.
What elso does Crypto bring to the table?
Fiat money — by the exception of digital currencies — has been around for millenia. It is widely recognized and heavily depends on a single country’s economic performance. To store value, fiat heavily relies on people, because most fiat currencies are not tied to physical resources, rather, to a GDP, an economical performance, political standing and long history of geopolitical relationships between different parties in the government. If a country fails to grow in a way healthy for its inhabitants — so does the value of the native fiat currency.
Most exchange routes are limited to a selected few of the currencies, like USD, EUR or CNY, while local ones are shunned under the rug. Political instability, wars, change of government — all of it undermines the value of the fiat currency you hold in hands. Moreover, there’s no upper cap on how much banknotes a government can print. In case when your native currency is not a top performer, not even in the top 20, your savings might turn obsolete when you reach an old age.
Fiat is hard to change into the local currencies, introducing hefty fees, payment limitations, multiple redundant validation methods and so on. Some might argue it’s cheaper than crypto, but you can’t beat the sub-1 cent commission some chains have to offer. Moreover, in order to travel freely, you have to make a bank account to exchange your own money into the local currency, otherwise you won’t be able to. Not all countries allow this, plus you have to come through a lot of paperwork to get it done.
You have no word in the development of the fiat currency. Not now, nor in the future, will anybody have such a direct impact on currency development as with crypto.
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