One underappreciated advantage that Bitcoin has over dollars is its fungibility or interchangeable nature.
While a physical dollar bill is equivalent to any other, almost all transactions today are digital, and sending a significant amount of dollars carries the risk of being recalled or coming from a questionable source. In contrast, Bitcoin transactions are irreversible, ensuring the finality of each transaction.
The dollar’s fungibility is limited by the fact that almost every country has its own currency, resulting in exchange rate fluctuations and adding risk to international payments. Additionally, converting between the local currency and dollars can be expensive or even impossible in many countries.
On the other hand, Bitcoin operates as a single global currency that offers cheap, near-instant global payments with confirmed settlement. If it can address this problem alone, it will have significant market value.
This essay was first published by David Veksler and has been under permission by the author translated into Vietnamese by the team of BitcoinVN News.
David Veksler is an entrepreneur by heart and the founder of Bitcoin Consultancy, a service which offers individuals and businesses workshops and 1-on-1 consulting to get them started on their journey towards monetary independence.
David’s previous work experience includes a long stint as Director of Technology at the Foundation for Economic Education (FEE), one of the longest-standing “free enterprise” research and educational institutes in the United States of America.