Bitcoin vs. Cash: Why is digital currency interesting?

The comparison between Bitcoin and cash is a topic that has garnered significant attention in the digital age, where financial technology is rapidly evolving. Bitcoin, as a type of digital currency, has several interesting features that make it an attractive alternative compared to traditional cash. Here are some of them

Globalization and borderless transactions

• Bitcoin can be transacted globally without going through intermediaries like banks, making international money transfers faster and cheaper. It is suitable for those who need to send money across countries regularly.
• Cash, on the other hand, is limited to use within the countries that use that currency, and international money transfers often take a long time and incur high fees.

Safety and user control

• Bitcoin is a currency built on blockchain technology, which is highly secure. Every transaction is recorded and verified transparently. There are no intermediaries, and users have full control over their finances.
• Cash, although not related to blockchain, is easy to use and tangible. However, there are risks of loss, theft, and the inability to track its usage in some cases.

Growth potential and attractiveness as an investment

• Bitcoin has garnered interest as an investment asset due to its rapid growth over the past few years. Investors view Bitcoin as a limited asset (with only 21 million coins), leading to predictions that its price may increase in the future.
• Cash, although stable in terms of spending, continuously loses value due to inflation and has no potential for growth as an investment asset.

Convenience and speed of payment

• Bitcoin can be used for instant digital payments through applications or crypto wallets, especially in countries where Bitcoin payments are increasingly accepted. Payments are quick and do not require carrying cash.
• Cash is convenient for transactions that require speed or in cases where there is no internet. However, carrying large amounts of cash may not be safe and can be inconvenient in some situations.

Protecting value from inflation

• Bitcoin is viewed as an asset that hedges against inflation because it is limited in supply and cannot be increased at will like printing money. This leads some investors to see Bitcoin as a way to preserve the value of their money.
• Cash is at risk of losing value due to the increase in the money supply, which may reduce the purchasing power of cash holders over time in line with inflation.

The choice between using Bitcoin or cash depends on individual needs and suitability. However, Bitcoin is becoming an increasingly interesting option in this digital age for secure transactions and long-term value preservation.