“Internet money” is in fact not fiat money online.
It isn’t your banks numbers being shown on a digital screen instead of on a piece of paper showing you how much money you currently have in the bank.
The money of the internet - what i regard to be Bitcoin - is more like digital gold, rather than digital fiat.
And there is a huge difference between digital fiat and digital gold.
Gold’s supply is fixed. There is only a certain amount of gold on earth.
However fiat money can be, and has been, printed to infinity. Think of the German Reichsmark for example.
Adding more currency to the monetary base is like pouring more water into a glass of lemonade, claiming that there is more of that tasty lemonade as we have added more water.
In a sense this is true, the glass is now filled to the brim, and we can see that we have more than we had before.
However, as soon as we take a sip of that lemonade, we can taste that the lemonade has clearly been diluted.
It’s not lemonade. It’s not lemonade anymore, it’s water.
The reality is clear. There isn’t more lemonade ( value ) because we added more water, all we did was to make it look as if there was.
With Bitcoin this isn’t possible. With Bitcoin you cannot distort the supply, so 1 Bitcoin will always be 1 Bitcoin.
Pretty much as we percieve our currencies to be, while they aren’t.
And as we look at the price of Bitcoin in our respective currencies, we will see that if inflation ramps up, and money printing begins again, the currency will lose value, and Bitcoins price will rise.
This is Bitcoin. The end goal is a currency not possible to distort, free for all to use, unconfiscatable and programmable.
Having programmable gold is a completely new venue for money that the world has never seen, and it requires it’s very own topic of discussion.
Native internet money is better because it simply isn’t controlled by the central banks. It’s not the same
currency. They don’t abide by the same rules not by the same rulers.
And this is the difference between a native internet money, Bitcoin in this case, and a national currency.