Fiat Form Of Payment

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Fiat payment method as is common it's a form of payment that involves using physical cash or bank electronic transfer to pay for goods and services and this is a formed of money that the government is solidly behind and is the most widely accepted form of payment anywhere in the world, this is old school and it's still working till date and people generally have more trust in this form of payment.

We use this for almost any form of services we want to pay for be it online or offline, it can be used to buy something in a grocery store or make purchases online using our bank cards, this is a form of form that's issued by the government of a country and backed by them as the legal tender for payment of goods and services.

Ofcourse we know we have other forms of payment, cryptocurrencies for instance amongst others, the thing now is what's the advantages of this payment method and what's the disadvantages and which outweighs the other I will still talk on that today.

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Advantages Of Fiat Form Of Payment

One good thing about this payment method lies hugely on the fact that they are widely accepted, I mean there is no place in the glove where this form of payment is not accepted and for this reasons it easier for people to use and fiat payment method is basically the only payment method which has the solid backing of the government and this form of payment is actually regulated in contrast to cryptocurrencies form of payment and for this reason fiat is not subjected to the kind of price fluctuations that is common in the crypto market which makes fiat payment method more ideal.

Fiat payment method also due to the fact they are being regulated it makes it much easier for people to trust them and the regulations means that it's users are protected in events of fraud or other dispute as the government will ensure their rights are being fulfilled and they are not so technical or hard to use infact it could be the simplest thing one could use and requires no tutorial of any sort to use.

Because of it's simple nature it makes it much easier for people to make use of this in their daily life routine which is a great advantage of fiat currency unlike cryptocurrencies form of payment where we might need a form of technogy or guidance to know our way around the blockchain.

Also in fiat currency one doesn't necessarily need to be connected to the internet to carry out basic transactions, it is not only accesible electronically but fiat possess physical cash which means it can be accessed and used by all without any electronic or technological infrastructure like in cryptocurrencies which is an added bonus.

Disadvantages Of Fiat Form Of Payment

One bad thing about fiat is this, it's centralized and kyc is always required which means they government possess your personal information and transactions we do online is not protected, no protection of users privacy and the central entity which is the government has full power to do anything they want if they so deem fit since they could easily regulate it as they deem fit and if they suspect anyone of any activity they could easily freeze users funds which means fiat offers little or no form of financial freedom which is a big disadvantage.

Also unlike cryptocurrencies payment which has low cost as there is no middle man intermediating as the case maybe, here in fiat there is always a presence of a middle man often in the form of financial institution like banks which helps to process this payment and in the process cost is being inccured which leads to unwarranted transaction cost in fiat transactions which may not be to the likeness of the user.

Now the presence of hard physical currency could be an advantage as it makes it acessible to all but this could also be a form of great disadvantages and malicious propel leverage this by duplicating a false or fake note with intent of deceiving people it's the real thing and this results in enormous financial loss for those who fall victim by taking this counterfeit which has no real value.

Fiat money or means of payment is easily inflated depending on the economy of the country it often leads to their currency facing inflation where the money reduces in value, that is to say if normally it takes $39 to purchase a basin if it now take $200 to purchase same item, this is so bad as it leads to massive depreciation of a country's fiat currency which is something that is common to fiat money

Conclusion

Fiat payment method do have it's merits and dis-merit as we have seen beautifully illustrated in this article as I highlighted and ofcourse we are not subjected to one payment method as technogy has made it possible to have access to different forms of payment which means as long as the government of our country is not against it we can choose alternative form of payment or we can stick to fiat if it most suits our needs it basically depends on what we are looking for.