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Believe it or not, the world is stepping foot into a cashless society, and today, a very minimal percentage of global money is still present in physical forms of currency. The advent of cryptocurrencies, especially bitcoin has changed the economic ecosystem to some great extent. You can use bitcoin as both assets for long-term investment and virtual currency.
With the increasing acceptance of Bitcoin trading and other cryptocurrencies by corporate giants, nowadays bitcoin is quite popular. Let’s learn from the following paragraphs whether it is better to go for bitcoin payment or traditional payment with fiat currencies.
What is bitcoin?
Unlike traditional currencies, bitcoin is a decentralized digitally encrypted virtual currency. This particular cryptocurrency counts on blockchain technology and all the transaction records will be stored in the public ledger in numeric form. Lately, many companies are coming forward to accept bitcoin as a payment method from the customers for their products and services.
What is fiat currency?
Fiat currency refers to the money which has been made a legal tender by fiat or government decree. Generally the coins, paper currencies etc. used by everyone fall in the category of fiat currencies. Among the popular example of fiat currencies, there are US Dollar, British pound, the euro, Indian rupee and so on. Unlike digital currency, fiat currency is quite convenient to use and its production is quite cost-efficient.
Comparison between bitcoin and fiat currencies as the payment method
- Unlike fiat currencies, cryptocurrency, especially bitcoin is an encrypted virtual currency that is not regulated by any centralized authority. As a result, the payment through bitcoin and other cryptocurrencies is much faster than that of fiat currency.
- The fiat currency is generally issued by centralized banks. Despite that, fiat currency is not capable of protecting the economy completely whereas, bitcoin operates independently.
- Fiat currency still requires intermediaries in the process to make the transfer. Whereas in the case of bitcoin and other cryptocurrencies, there is no need for any intermediary.
- Fiat currencies are already legal in all the countries of the world. But in case of cryptocurrencies, they are only acceptable in a handful of countries. There are several countries in the world that have accepted bitcoin as a legal tender but there are some which have banned the use of bitcoin totally.
- When it comes to supply, you can have as much fiat currency as you want in the economy with absolutely no bar. Therefore, it is evident that the bitcoin price will gradually increase with the increasing demand of the investors.
- Another thing, fiat currency has to be stored in bank accounts.
What are the top Fiat currencies being used for bitcoin trading?
- USD or US Dollar- Believe it or not, the United States of America has embraced the trading in bitcoin wholeheartedly. It has been seen that around 85% of the market share for bitcoin trading comes from US dollar. The country has found a huge user base for Blockchain-based bitcoin trading.
- JPY or Japanese Yen- In the context of bitcoin trading, the Japanese yen comes in the second position. Japan is known for its wide range of bitcoin trading activities on its earliest days. The country has streamlined bitcoin trading for its crypto investors. Currently, Japan is responsible for 5% of the market share when it comes to bitcoin trading.
- EUR or Euro– There are several European countries such as Germany, France, Belgium, Netherlands and a lot more which are welcoming bitcoin and other cryptocurrencies to the market.
- KRW or Korean Won– If you are enthusiastic about bitcoin and other cryptocurrencies, you must have known that Korea has passed several cryptocurrency laws in the market. So, for bitcoin trading, the investors can use Korean Won also.
Now that, you have a concrete idea about the top fiat currencies and bitcoin trading, you can embark on your bitcoin journey. Today, there are a few reputed online groups in the market for bitcoin trading and other crypto investments. You can check out the Yuan Pay Group website according to your convenience if you want to get a good grasp on bitcoin and other cryptocurrencies.