There are a few ways by which one can get their hands on bitcoin. The basic one is you directly mine it, which is not possible for individual miners as mining requires a complex and highly sophisticated supercomputer. Another way is to start accepting payments in bitcoin. And the third advantage is that you may trade bitcoins for other currencies, such as fiat currency. To lean more then Register here
For those who are hearing the term fiat currency for the very first time, let us tell you what it is. This type of currency is issued by the government of any nation that is recognized as a legal tender because the government declares it as a legal tender. On the contrary, cryptocurrencies are based on blockchain, and therefore they are decentralized and do not fall under the jurisdiction of the government.
There are several differences that distinguish fiat currency from cryptocurrencies. For instance, cryptocurrencies can be considered as a medium of exchange, as they permit transactions between two people, and people can also use them to hold value.
However, cryptocurrencies also provide benefits that the current traditional financial system is incapable of providing, such as the ability for everyone, located anywhere, to transfer money whenever they wish, without the intervention of financial intermediaries or a government. This is the most innovative feature of cryptocurrency.
The next difference is that Cryptocurrencies have intrinsic value, which fiat money does not have. Fiat currencies are legal tender and derive most of their value from debt. Nonetheless, fiat currencies are useful for buying this global currency. There are a few most popular fiat currencies that are widely accepted by crypto exchange platforms. The next part contains our discussion on these matters.
The national currency of the United States of America is at the top of the list of fiat currency that is used for trading for bitcoin. Out of the total trading, about 86% of trading is done with USD. It has always been at the top currency used to trade for bitcoin since the beginning. This is due to the fact that the US market is always a step ahead in technological advancement. The government has a large budget for research and development.
Additionally, they have a capitalist economy, and the population has a mindset of getting into new markets; people are not conservative, unlike other nations. Another reason why the USD is at the top is that the government of other nations were slow to develop infrastructure to facilitate the trade of crypto. This led to people living in developing nations having to first convert their domestic currency to USD, and then they could trade it for crypto.
In addition to this, several companies were not initially accepting other fiat currencies apart from the U.S. dollar. Due to all these reasons, USD has always remained on the top of the global list of most traded fiat currencies.
The national currency of the land of the rising sun, Japan, shares a total of 6% of the market share. When it comes to trading in bitcoin, it is the second most popular option after the dollar of the United States. The early adoption of cryptocurrency by the Japanese public can be attributed to the country’s government, which sanctioned the usage of bitcoin and other cryptocurrencies.
Moreover, the government of Japan was among the first to lay down regulations that facilitate crypto exchanges. All these reasons put Japan on the map of cryptocurrency.
The countries that make up the European Union all use this currency, hence it is referred to as the Euro. After Yen, the next currency on the list is the Euro. When it comes to the buying and selling of bitcoins, the Euro ranks in third place, with a market share of about 5%. There are specific nations that have policies that put restrictions on the use of bitcoin, but overall, European Union has always been ambitious on matters concerning bitcoin.
The value of bitcoin and other crypto assets has yielded multifold returns. The growth in value of cryptocurrency is more than that of traditional currency. With the right platforms.