Numerous individuals have begun to rely on digital currencies such as bitcoin as a store of value, a position formerly held by the dollar. Nations around the world (including the US) have begun to make adjustments to existing policies or build from the ground up a regulatory framework to accommodate the transition to digital currencies.

Cryptocurrency is constantly being pitted against the dollar with the former being touted as a replacement for the latter. If you’re a regular in the digital sphere this is probably a very familiar argument for you. As virtual currencies continue to witness an unprecedented level of adoption, the crypto industry is undeniably in the lead.

Let’s take a look at the advantages of a cryptocurrency over the dollar. What is it about these assets that have caused so many people to abandon the most stable, reliable currency in history? 

Decentralization

Among several things that distinguish cryptocurrencies and a fiat currency like the US dollar, the first marked difference is that while the dollar is issued and controlled by the US government and central bank, cryptocurrencies are not governed by any centralized entities. This system is a decentralized one and it is a fundamental part of the crypto space. 

Supply

One key point in the crypto-dollar argument is the total supply of the currencies in circulation. The dollar is an asset with an infinite supply, if the number in circulation ever dips the central bank only has to print more. Over the past decade, the total number of USD going round has risen dramatically.

This feature renders the USD susceptible to inflation, Bitcoin, however with its finite supply is often discussed as a hedge against inflation. Bitcoin has a capped supply of 21 million units, this makes it a scarce asset which in turn makes it deflationary. Hence several crypto enthusiasts believe cryptocurrency might be the answer to inflation.

Greater Returns On Investments

The traditional financial system beneath which the USD operates doesn’t offer users quite as many or as robust opportunities as the crypto industry provides its users. A crypto holder may choose to save with a platform such as BitcoinzTech and make passive income of up to 10% APY, far greater than the 0.5% traditional banks typically offer.

Privacy 

In the crypto space, users are given near-total control over their funds. With the USD, a bank would have custody of your assets, however, cryptocurrencies can be stored in non-custodial wallets only the owner can access. Anonymous transactions are allowed and security is typically highly prioritized.

Convenience and Accessibility

These are some of the best features of the crypto industry, viewing or transacting assets doesn’t involve quite as many processes. Additionally, the crypto industry is one of the easiest to join regardless of where you are in the world.