Understanding the relationship between Bitcoin and traditional fiat currency is key to grasping its potential as a monetary instrument. As fiat currencies can be printed without constraint by governments, their purchasing power may diminish over time due to inflation, affecting individuals’ savings and investment choices. Bitcoin, despite having a capped supply, becomes an avenue for addressing the wealth erosion issue caused by printing an abundance of fiat money. By blending digital scarcity with a trustless, borderless, and censorship-resistant transaction framework, Bitcoin demonstrates a fundamental distinction from traditional currency systems. It provides both a diversified asset solution for safeguarding one’s purchasing power and a gateway to decentralized finance, entirely altering current paradigms.











