JAKARTA - Bitcoin crypto assets continue to steal people's attention with significant price increases in early 2025. However, there is still misconception in society about what is the difference between Bitcoin's cryptocurrency and fiat currencies.
In the long course of human history, the search for ideal forms of money has evolved from shells to cryptocurrencies. In the latest chapter of the evolution of this money, Bitcoin is present as an interesting alternative to a unique set of characteristics that distinguish it from gold and fiat money. This article will explain why Bitcoin, although still new, has shown its potential as a superior store of value in the digital era.
Ideal money must meet some of the basic criteria, among others; Lasting, verifiable, easy to share, commensurate, rare, widely accepted, and non-censored. Its traditional gold and fiat money (such as the dollar or euro) have met most of these criteria with a wide range of success rates.
Reporting from Pintu Academy in an article entitled Money and Bitcoin Characteristics, Bitcoin has different characteristics from fiat currencies, including:
1. Hold Long: Bitcoin is digitally stored, making it almost impossible to damage. 2. Easy to move: Bitcoin can be moved globally in a matter of minutes, without the need for expensive and complicated physical transfers. 3. Verifiable: Bitcoin ownership verification can be done with mathematical certainty via cryptography. 4. Breakable: Bitcoin can be split up to 1/100 million (satoshi) which allows transactions in small numbers easily. 5. Rare: Finite Bitcoin supply is only 21 million, making it a rare source and potentially increases its value in the long term.6. Non-Disensorable: Bitcoin transactions can be done without requiring approval from third parties, providing higher financial degrees of freedom.
Bitcoin operates in a decentralized network, not controlled by anyone, making it unique. In addition, Bitcoin's open-source nature allows programmers from around the world to develop and contribute to its ecosystem, as well as create applications that use Bitcoin blockchain without requiring permission.
Bitcoin, gold, and fiat money each have their place in the world of finance, with unique characteristics that distinguish each other. However, Bitcoin offers a number of advantages that make it an attractive choice as a store of value tool in the digital era, despite price volatility that is still a concern.
With the ability to meet and surpass some of the main criteria for ideal money, Bitcoin shows the potential as an innovative solution to the shortcomings that exist in gold and fiat money, providing an alternative for people to store value according to their needs in the digital era.
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