Cryptocurrency versus fiat — Robin Wils's website
Last modified: Mon, Jul 19, 2021
What is cryptocurrency?
Cryptocurrency is a digital asset. You can see it as virtual money. Many people have heard about Bitcoin. Some think that it is a scam and others say that it will replace fiat money (dollar, euro). Let’s compare the two.
The supply of fiat and crypto
The supply of fiat money is not limited. They can print money and this is needed for the economy to work. Many cryptocurrencies are limited, which means that there is a maximum number of coins that can exist. This often means that the value of the coin increases over time because it becomes more rare.
Not all cryptocurrencies are limited, but Bitcoin is. Bitcoin is a store of value and isn’t meant to be traded a lot. It is unlikely that Bitcoin will replace fiat money. There are countries which use Bitcoin as currency, but it is unlikely that it will stay that way in the longterm. The cryptocurrency XRP is more aimed at being a currency. More XRP can be created.
Is cryptocurrency a scam?
Some cryptocurrencies are purely designed to get money from the buyers and are scams. It is important to use trustable websites or banks if you want to buy a cryptocurrency. Most coins have a use case. Some are made to use in games. Others are made to be stable in price. Coins like Bitcoin are made to act like a store of value.
Cryptocurrency is not legal in every country. Some people claim that Bitcoin is often used by criminals. Bitcoin is not the best option for such purposes. Every Bitcoin transaction is public and can be traced back to a wallet. Wallets are often linked to personal data. There are coins which have privacy in mind like Monero. Fiat money also can, and often is, used for criminal purposes.
Is it bad for the environment?
This is debatable. More and more cryptocurrency is created with green energy. Money printing on the other hand has no limit and consumes material. Some cryptocurrencies are even created to donate to organisations which help the environment. Using crypto does not have to be hard. It can be like a bankcard.
I do have an other page about my thoughts about the environment. It does not include anything related to crypto though.
Should you invest in crypto?
It totally depends. Only invest in projects that you trust and like with money that you can miss. I would recommend to look at the top coins if you are new to cryptocurrency. You could always give it a try.
Many banks allow you to buy crypto. The advantage is that you can’t lose your crypto if you forget your password. Not all banks will offer interest on your cryptocurrency though.
A popular platform is Binance. Coinbase is well-known too, but I have chosen Binance. Most platforms apply a small trading fee. Transfering a cryptocurrency often costs something. You often have to pay that plus the trading fee. NANO is a cryptocurrency which does not have any transfer fees.
Interest on your crypto
I highly recommend BlockFi if you want to get interest on your crypto. BlockFi does not support many coins, but it offers high interest rates.
Get free crypto
Not everyone has the money to invest. Most people do not want to waste their valuable time either. Luckily there are ways to gain a small amount of crypto without sacrificing too much of your time.
Brave browser is similar to Google Chrome, but Brave blocks ads by default. It does show small ads notifications if you turn a setting on. You will get paid in BAT when you see one of those notifications. The only time you will lose is the time you spend by making an Uphold account which will contain your crypto.
Faucets to gain free crypto exist, but they are often not worth your time. I would suggest making videos on Odysee if you want to put time into something. It is a video platform like YouTube which pays in crypto.
Betfury can also be a fun platform to give a try if you like gambling. Gambling is high risk though. It does not require any money to claim a box of free crypto, but don’t expect to make a ton of money on the platform. You can claim some free crypto every few minutes.