Cryptocurrency and basic Fiat Money have a variety of similarities but cryptocurrency offers huge advantages. Whether you are a business owner, a worker, or any sort of asset manager. Having governance over your wealth is an important part for your growth.

  • Both can be treated as a store of value
  • Both rely on consumer trust to enable a transaction
  • Bitcoin can be trusted due to its tamper proof technology and can’t be spent twice
  • Fiat Money is verified by a third party giving consumers peace of mind

What is Fiat Money?

Fiat money is a currency that is treated as a store of value that’s created by governments to regulate economies and people. Usually in the forms of printed dollar bills or minted coins, Fiat Money only attains value based on the governments contribution to the value through monetary policy and governed regulations within the economy. In short, Fiat Money is value created by governments with rules that the overall population has to follow.

What is Bitcoin?

Bitcoin is the first cryptocurrency that was created by an unknown entity named Satoshi Nakamoto. Theories of Satoshi have pointed to the Russian Government, The combination of the biggest technology companies, and even a man in China named “satoshi”. With Bitcoin only having 21,000,000 units, governed and distributed through a safe and secure blockchain through the process called mining, the value of it is truly based on what people want it to be. Also making it an even more scarce asset when compared Gold, Bonds, or Stocks. There are many types of different cryptocurrency.

  • Privacy Tokens
  • Defi Protocols
  • Tracking Tools
  • Reward Tokens
  • Stablecoins

With so much innovation within the space, Cryptocurrency projects continue to create new alternatives to the current financial system and the problems it comes with it, ranging from liquidity, verification, and transaction times.

Advantages with Fiat Money.

Fiat Money still remains the “top dog” legal tender in most countries simply due to the fact they are stable and controlled. Unlike other types of currency like cryptocurrency or commodity-based currencies, The stability of fiat currencies allows regulators and banks to fight against inflation and financial recessions. Therefore, when an economy is sinking or booming, Currencies will be adjusted as such to accommodate the overall condition of an economy.

Advantages with Cryptocurrency.

Available with a click of a button, and sometimes no security checks needed, these currencies are accessible for anyone who wants to make online transfers seamlessly. Even though cryptography is a complicated subject, in the future, Cryptocurrency will be easier to transact and own securely.

Cryptocurrencies came into being as a bi-product of Satoshi Nakamoto, the brainchild behind Bitcoin. Nakamoto did not intend to develop a currency but a peer-to-peer electronic cash system for facilitating transactions without any central oversight. The decentralized nature of the network means there is no central server or authority validating transactions between people or business. Everything is open source and is recorded on a blockchain for the entire public to see and to verify a transaction.

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