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Bitcoin vs fiat currency vs gold: the main differences
Short answer: fiat money (dollar, euro, peso) is created by governments and backed by nothing, so printing more lowers its value. Gold is limited by nature and keeps value, but it is slow to transfer. Bitcoin is limited to 21 million coins, decentralized and fast to send with low fees.
Three types of money
Cryptocurrency, with Bitcoin as the main one, is money made by the people for the people. The dollar or euro is government money, and governments don't want competition. Gold is provided by nature; Haggai 2:8 says the silver and the gold are mine.
Store of value
Money should store the value of your work. Around the 1930s the dollar was backed by gold and inflation was low. When the US government dropped gold backing, inflation kept rising. Fiat means "let it be done": nothing backs it.
Transfer speed and fees
Paper money works only face to face; otherwise you need a bank, PayPal or a card. A card payment can take about three days, and a wire may cost around $20 or take three to five days. Crypto is fast with low fees, especially altcoins. Gold is hard to send if the person is not in front of you.
Limited supply
Bitcoin will only have 21 million coins. Governments can print as much as they want, and more money in circulation lowers its value. Gold is limited on the planet, which is why it keeps value.
Centralization
Crypto is decentralized: no single entity controls it, and you keep your money in your own wallet. A hot wallet on your phone is fine for daily money; for more security use an offline wallet. Fiat is controlled by governments and banks.
Fiat money and inflation
With fiat money one government mints the money, controls it and works with the banks. Because it is not backed by anything, the more they print, the more prices rise. Search charts of the dollar after it stopped being backed by gold and you will see inflation going up and up.
Gold: real but slow
Gold is real money that keeps its value because it is limited. The problems are transferring it, it is regulated, and if the person is not in front of you it is hard to pay with it.
Crypto wallets
With cryptocurrency everyone has their own account in their pocket. I recommend a hot wallet on your phone only for the amount you are comfortable using every day. For larger amounts, use an offline wallet, which is more secure.
What money must do
Any money should do three things well: store the value of your work over time, let you transfer that value to another person, and do it quickly. If you are a carpenter or a computer technician and someone pays you, that payment should keep its value. Compare each type of money on those three points and the differences become clear.
Quick comparison
Bitcoin: made by people, limited to 21 million, decentralized, fast and cheap to send. Fiat: made by governments, unlimited printing, centralized, slow and with fees for transfers. Gold: made by nature, limited, keeps value, but slow and hard to transfer remotely.
Frequently asked questions
What does fiat money mean?
Money declared valuable by the government, not backed by anything like gold.
How many Bitcoins will exist?
21 million.
Why does gold keep its value?
Its supply is limited and there is no way to make more.
Is a phone wallet safe?
Use a hot wallet on your phone only for daily amounts; keep larger amounts in an offline wallet.