Cryptocurrency is changing the world as we know it.

Analogous to how computers revolutionized the way we store information cryptocurrency has changed the way we view and handle money. Although cryptocurrency is a new asset it’s superior to the U.S. dollar, in many ways.

1. Inflation

The U.S. dollar is notorious for inflation.

According to the Bureau of Labor Statistics, the dollar experienced an average inflation rate of 2.15% annually.

In other words, $1 in the year 1860 is equivalent to $28.17 in 2017. Prices in 2017 are 2717.0% higher than prices in 1860.

The current inflation of U.S. dollars will only continue. This is a big negative for fiat (paper) currency and an area where cryptocurrency takes the lead.

For example, Bitcoin is anti-inflationary because there are a set amount of Bitcoins in circulation (25 new coins are added into circulation every 10 minutes), and a capped maximum amount (21 million in total). Because of the limit, it forces the value of Bitcoin to be based on supply and demand economics. This proves to be incredibly more sound than the excessive printing of the Federal Reserve which printed approximately 24.8 million notes a day with a face value of approximately $560 million.

In addition, Bitcoin will continue to grow in value as more people enter the system. This time last year, one Bitcoin was worth $125 U.S. dollars. Today, one bitcoin is worth upward of 15 thousand U.S. dollars. Cryptocurrency is superior in it’s ability to increase in value.

2. Ease of Transfer

Cryptocurrencies cut out the middleman.

Transfering money through banks and governments is a headache when considering all of the fees, delays and regulations attached. Forget the hassle of paying your local bank a fee from 15-20% and instead use cryptocurrency.

For example, a massive $150,000,000 in Bitcoin was transferred last year during Bitcoin’s “China Bubble”. This was done in real time seconds, for a fraction of a percentage of a Bitcoin, from one Bitcoin wallet to another. Once again this would not be possible with U.S. dollars.

3. Security Measures

Losing paper money is relatively easy to do, forget the actual theft of it.

How many times have you lost a $5 dollar bill? Probably a couple times. How many times have you lost your wallet? Probably a couple times. How many times have you lost your desktop? Probably not too many times. Cryptocurrency makes it easier to keep track of your money.

In addition, it’s nearly impossible to make counterfeit Bitcoin whereas it’s much easier to make counterfeit dollar bills.

Bitcoins are digital in nature so they are much more secure. In addition, you can protect Bitcoin by, backing it up, saving it to another server, passcode protecting it, having paper wallets, and offline vaults, etc. These security options are determined by you, not a government or bank, and are almost limitless.

4. Decentralized

Cryptocurrency is fully independent.

There is no authority controlling your money, your ability to transfer that money or watching how you use that money. It’s all up to you. The dollar, in contrast, is highly regulated.

The U.S. dollar inhibits anonymity, particularly when using a bank account where your private details are disclosed through the account number. Whereas cryptocurrency is inherently private and there is little chance of transactions being tracked.

The entire Bitcoin network is maintained by individuals and organizations known as Bitcoin Miners. Bitcoin miners process and verify bitcoin transactions through a mathematical algorithm based on the cryptographic hash algorithm SHA256

Whether you love cryptocurrency or are just now hearing about it, it’s an interesting topic worth looking into. Hope you enjoyed learning about the contrast between the U.S. dollar and cryptocurrency.