Cryptocurrency vs Fiat Currency – Key Differences

Ari Maccabi

Cryptocurrency vs Fiat Currency – Key Differences

Cryptocurrency is a fast and easy way to transfer money.  It is much quicker than Fiat currency.  Fiat is another way of saying “government money”.  A good example of Fiat money is the American Dollar or the European Euro.  Fiat money is subjected to government regulation and there are laws governing the use of the money.  With Cryptocurrency it is completely open source similarly to how people give out free software online.  So, Cryptocurrency is more user friendly and allows the user to have more control over their wallet with less governmental interference.

This means that you can buy and sell things in various other countries without having to worry about converting your Cryptocurrency to another currency because Cryptocurrency is not backed by a governmental entity.  The fact that Cryptocurrency is not tied down by laws allows it to exist separate from the trade laws the rest of the world follows with Fiat coin.  This makes Cryptocurrency a great option for people who travel the world and want a fast and easy way to make payments overseas without having to convert their American Dollar wallet to another form of currency.

The fact that Cryptocurrency works this way makes it easy to manage.  Cryptocurrency is much easier to manage and track than Fiat money because of how it does not need to convert to other currencies everywhere you go.  This plays well with its investing system and although it is much less stable than Fiat money’s stock market Cryptocurrency’s investing system allows investors to waste less time calculating and more time investing.  Cryptocurrency makes the investing easier than Fiat money and less time consuming.  Not having to worry about conversions between currency make investing easier to follow and predict.

Fiat money works with banks and institutions who hold your money for you.  Cryptocurrency works with digital wallets where you purchase your bitcoin entirely online.  Wallets like Coinbase (https://coinbase.com) allow you to manage all your money from your phone without the need for any financial institutions.  You can even make purchases from certain apps.  You can transfer the funds to a PayPal and use the PayPal debit card to buy items without the need for a financial institution at all.

Fiat money is more widely used and common.  Cryptocurrency is less likely to be accepted at a standard retailer because of how it is new and looking to gain more traction as a standard currency through trial and error.  At the current stage Cryptocurrency is starting to gain steam but has not set itself as a standard currency yet.  Currently, Bitcoin is the most popular form of Cryptocurrency and it has the best track record among Cryptocurrency for becoming a standard form of payment at merchants worldwide. It is also the first Cryptocurrency.

So, overall Cryptocurrency is a form of currency on the rise for its ease of use and simplicity.   Fiat money will always be around because of its prevalence and popularity.  Cryptocurrency offers the public easy access to their money wherever they are without needing a financial institution.  Fiat money requires the use of a financial institution and is subject to laws restricting its use to the territory that Fiat money belongs to (Example: USA).  Cryptocurrency is easier to manage and follow then Fiat money which is subject to many conversions when traveling from country to country.  Fiat money is more standard and prevalent that Cryptocurrency and is more likely to be accepted at the merchant you buy from than Cryptocurrency.  The Fiat stock market is less volatile and has a tighter spread (highs and lows) compared to the Cryptocurrency market which is highly volatile and is subjected to extreme spread.  If you want to learn to trade cryptocurrency, there is only one place to go… iCoinPro

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