For anyone looking for financial independence, they have the option to choose between investing in traditional assets or investing in digital assets, such as cryptocurrencies. When it comes to cryptocurrencies, Bitcoin is the well-known currency compared to the thousands of other options. The traditional financial system is often capped with limitations and inefficiencies. On the other hand, Bitcoin offers a powerful alternative as it is decentralized and encourages individuals to take full control of their wealth.
Read on to learn more about how Bitcoin differs from traditional assets.
Bitcoin is Decentralized
At the core of Bitcoin is its decentralized nature. If you’re new to the world of cryptocurrency it’s in your best interest to get educated first and understand the basics of what is bitcoin and the underlying network. Compared to other assets, Bitcoin is not controlled by an entity.
The decentralization aspect of Bitcoin enables users to transact directly without the need for third parties or intermediaries. The decentralized setup of Bitcoin establishes a sense of transparency and trust that is often lacking with traditional assets.
Bitcoin Vs. Traditional Assets
Cryptocurrencies, such as Bitcoin, have value. Currencies, such as the dollar, have value because the governments say they do. This aspect indicates that if the government were to say today that the dollar is worthless, then nobody would accept it. However, Bitcoin works in the exact opposite way. Why, you might ask?
The reason is that Bitcoin is democratized money, which means that no single country or group controls this currency. If a government states that they don’t like Bitcoin, it won’t matter because Bitcoin is essentially decentralized. There are thousands of Bitcoin miners and nodes all over the world securing the network and making sure that anyone and anywhere can trade Bitcoin.
With that said, while traditional currencies are backed by governments, Bitcoin is backed by the people.
Bitcoin Offers Financial Inclusion
Compared to traditional assets, the underlying appeal that Bitcoin has and that no other asset offers is about financial inclusion. As we mentioned before, Bitcoin is available to anyone, anywhere in the world. Billions of people around the world are either underbanked or unbanked as they lack access to the necessary financial services.
This is where Bitcoin comes in, as Bitcoin opens the door to those individuals who lack financial services to participate in the world’s economy without having to face the barriers that are part of the traditional banking systems.
Bitcoin investors or Bitcoin users only need their smartphone and access to the Internet to engage in Bitcoin transactions and pave their path to financial independence. This financial inclusiveness can bring out transformative changes in how communities around the world function and progress financially.
Bitcoin – The Future of Wealth Preservation
Bitcoin is essentially the future of wealth preservation. After all, why would you want to invest in fiat assets when you can invest in digital money that provides the same liquidity and fractional ownership? If you were to analyze past data, you would find that Bitcoin creates value over time by providing a hedge against potential market downturns. After investing in Bitcoin, you can have the mental peace that your digital asset won’t lose value due to inflation.