The Similarities and Differences between Crypto-currency vs Fiat Currency
What is it like to start usting crypto currencies instead of fiat currencies? That is a question every person need to ask themselves. Some day it will happen and we need to be preapred for that. According to many opinions crypto currencies better than fiat currencies at everything. But we need to ask the guys hold the whip hand is thinking like that ? Of course there is strengths about fiait currency but is it enough ?
Crypto currencies and Fiat currencies have many traits in common. Both are can be used to purchase goods and services.There are types of assets categorized under crypto currencies and fiat currencies. Moreover, both currencies can be stored in different forms. Another similarity is that divisibility, Crypto currencies and fiat currencies can be divided into smaller fractions. In addition, the value of both of these mediums does not depend on any commodity.
However, there are some differences crypto currencies and fiat currencies. First of all, fiat currency is a pyhsical Money but crypto currency is digital Money.It’s the most important difference about crypto currency and fiat currency.Maybe the most important issue about crypto currency is the digitality. Because we expect everyone can use money, and unfortunately everone can not use digital devices.For example old peoples.Big part of old people can not use digital devices very well.In conclusion they can not use crypto currencies. Secondly, fiat currencies is centralized , monitored by governments. Crypto currencies is decentralized, no one can control.For example Bitcoin has not a central board or CEO.There is no one can intervention the network.Bitcoin created by a person which using Satoshi Nakamoto username at 2009.No one knows who is Satoshi Nakamoto.And there is no proof he or she is alive now.The last mesage from Satoshi Nakamoto is sending in 2010. Also Fiat currency has unlimited supply, governments can print fiat Money anytime any amount but Crypto Currencies has limited supply, no one can print or create more supply.As an example, Bitcoin has 21 million token. And no one can create a single bitcoin more than 21million.
In conclusion, while there are some similarities, can be purchased or assets under the currencies, there are significant differences between these two types of schools. Starting the using crypto currencies insted of fiat currencies may seem risky or impossible but knowing that crypto is the future and everyone and every country will use the crypto currencies.There is no doubt crypto currencies will replace with fiat currencies and we need to learn using crypto currencies and be ready to live with them.
