What is the difference between cryptocurrency and fiat currency?
Learn from Cryptocurrency

Cryptocurrency vs. Fiat Currency
Fiat currency and cryptocurrency are two fundamentally different types of money.
Fiat Currency
* Centralized control: Issued and regulated by governments or central banks.
* Physical and digital forms: Can exist as physical banknotes and coins, as well as digital representations in bank accounts.
* Value backed by government: Its value is derived from the trust in the issuing government and its economy.
* Subject to inflation: Governments can increase the money supply, leading to potential inflation.
* Intermediaries: Transactions often involve intermediaries like banks.
Cryptocurrency
* Decentralized: Not controlled by any government or central authority; operates on a peer-to-peer network.
* Digital only: Exists solely in digital form.
* Value based on technology and market: Its value is derived from its underlying technology (blockchain) and market demand.
* Limited supply: Many cryptocurrencies have a capped supply, making them potentially resistant to inflation.
* No intermediaries: Transactions occur directly between users without the need for banks.
In essence:
* Fiat currency is traditional money backed by a government.
* Cryptocurrency is digital money based on blockchain technology.
Would you like to learn more about a specific aspect of cryptocurrencies or fiat currencies?