Crypto Vs. Fiat: Bitcoin Outperforms Cash In These Two Regards
As you know by now, Bitcoin fell a lot recently and this freaked out crypto enthusiasts.
The fall was thought to be related to the coronavirus terror amidst the global crisis that we’re in. More analysts say that just like global economies have been affected, so was the crypto market.
The legacy markets also fell and the whole global economy is suffering these days.
Businesses are shuttered and they pull the plug on entire industries. A lot of lives have been already lost as well, and you can check out the situation in real-time worldwide.
Coinbase CEO talks crypto vs. fiat
Coinbase CEO, Brian Armstrong says that there’s one unique crypto aspect that shows the digital assets have a vital benefit.
Armstrong pointed out to the massive physical money amidst the global health crisis – it seems that banknotes can easily spread the virus as well.
In China, authorities have already disinfected and destroyed potentially infected cash in order to contain the virus as much as possible.
According to the online publication the Daily Hodl, the US Federal Reserve is also imposing up to 10 days of quarantine for dollar bills that are coming from Asia and Europe as a measure of precaution.
We're working hard to make it easier for people to use global, inflation proof, digital payments with crypto!
Passing paper currency and coins between people has never been hygienic.https://t.co/fgzB688yaC
— Brian Armstrong (@brian_armstrong) March 19, 2020
The second advantage of Bitcoin over fiat
Armstrong says another unique feature of Bitcoin will remain a key advantage over fiat: it’s a tight total supply of 21 million coins.
“Most peer to peer payment apps today are U.S. only and fiat currencies are going to lose their value more quickly with upcoming inflation,” he said.
He continued and explained that “It’s time for the world to have a global payment system based on sound money.”
Regarding the price of Bitcoin today, at the moment of writing this article, Bitcoin is trading in the red and the most important coin in the market is priced at $5,816.23.
Brian Armstrong is the co-founder and CEO of Coinbase, one of the largest crypto exchanges in the world (its reported Coinbase holds 966,230 Bitcoin ($7B) in Cold Wallet). Prior to his involvement with the blockchain and Coinbase, Armstrong worked at Deloitte and Touche as an Enterprise Risk Management Consultant.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Coinbase is a digital currency exchange headquartered in San Francisco, California.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.