Fiat Money vs. Cryptocurrencies

[starwill 456]

Fiat money and cryptocurrencies have in common the fact that they are not backed by physical merchandise - but that is the only thing they share. While fiat money is controlled by governments and central banks, cryptocurrencies are essentially decentralized, largely thanks to a digital accounting book (ledger) called Blockchain.

Another notable difference between these two monetary systems is the way in which the currency is issued. Bitcoin, like most cryptocurrencies, has a controlled and limited monetary mass - unlike fiat money that can basically be created from nowhere by banks, according to what they consider the economic needs of the nation.

As a digital form of money, cryptocurrencies do not have a physical counterpart or are limited by borders, which favors their ability to be used in international transactions. In addition, transactions are irreversible, and the particular nature of cryptocurrencies makes them more difficult to track than fiat money.

It should be noted that the cryptocurrency market is much smaller and, therefore, much more volatile than traditional markets - this is one of the reasons why cryptocurrencies have not yet been universally accepted, although as the economy "Crypto" grows and matures, volatility will probably decrease.

[Saoha 189]

We cannot deny the advantages and popularity that cryptocurrencies are. However, it has not been accepted by many governments in other countries. Why? Because it affects currency. It will make the government unable to control domestic finance.

[Khan 1414]

Just now, starwill said:

Fiat money and cryptocurrencies have in common the fact that they are not backed by physical merchandise - but that is the only thing they share. While fiat money is controlled by governments and central banks, cryptocurrencies are essentially decentralized, largely thanks to a digital accounting book (ledger) called Blockchain.

Another notable difference between these two monetary systems is the way in which the currency is issued. Bitcoin, like most cryptocurrencies, has a controlled and limited monetary mass - unlike fiat money that can basically be created from nowhere by banks, according to what they consider the economic needs of the nation.

As a digital form of money, cryptocurrencies do not have a physical counterpart or are limited by borders, which favors their ability to be used in international transactions. In addition, transactions are irreversible, and the particular nature of cryptocurrencies makes them more difficult to track than fiat money.

It should be noted that the cryptocurrency market is much smaller and, therefore, much more volatile than traditional markets - this is one of the reasons why cryptocurrencies have not yet been universally accepted, although as the economy "Crypto" grows and matures, volatility will probably decrease.

Fiat currency is more stable, good and can be controlled as Fiat money can be traced and if it is send to wrong address using online banking then it can be reversed while Crypto is not.

[Retno 163]

Both fiat and cryptocurrency can't be separated. Fiat controlled by government and central banks, this is why the price keep stable, even tend to be silent, not like crypto, which make us earn profit even we hold it, buta also lose them. 

[Kumar 260]

Crypto and Fiat currency both have advantages and disadvantages but crypto has one additional point that it's disadvantages can be controlled over time like the volatility it has currently would be reduced with the world adoption, illegal activities can be reduced with the regulations.

[jcarlo 206]

4 hours ago, denaks said:

At the moment, cryptocurrencies are a tool for speculation. You can say anything, but in fact it really is. To understand this, you do not need to be a major specialist, just look at the charts of courses that show both UPS and downs.

Agree, although we support cryptocurrency, we must be realistic that cryptocurrency is a speculation tool at this time, except for bitcoin because some merchants and countries allow bitcoin as a means of payment. But to replace bitcoin, I think there is still a long way to go because the government certainly does not want its authority to be disturbed

[starwill 456]

if it is correct that the adoption of the BTC must overcome endless barriers before supplanting the fiat money since this opens the door to digital finance where the market is released and decentralizes the money in very few hands and we all have opportunity to take a part of the cake.
 

[bestprofi 372]

Many say that digital currency is the way forward and will soon wipe out fiat money completely. Others say that cryptocurrency is essentially fiat money in digital form. The true is that both cryptocurrency and fiat money have advantages and disadvantages to be taken into consideration.

[1millionClub 494]

This versus might give people the wrong idea.

There are good crypto and there are bad crypto. If you compare bad crypto to FIAT, FIAT (better ones like USD or EUR) wins.

If you compare good crypto (like Bitcoin) to FIAT, no matter how good your FIAT example is, crypto wins.

[Mohs3n71 0]

13 hours ago, Saoha said:

We cannot deny the advantages and popularity that cryptocurrencies are. However, it has not been accepted by many governments in other countries. Why? Because it affects currency. It will make the government unable to control domestic finance.

yeah and because of that government are trying to kill crypto, they just want to keep their fiat money valuable as if crypto become very popular the FIAT will lose their value

[jak3 56]

I do support both the systems because both of them have negative and positive sides. Example of cryptocurrency market are being controlled by the Whales, and downside of the government money is that anyone can create it even if it does not exist in the economy. We have credit cards which allow you to make money from thin air even if Bank do not have that money.

[Corrado25 9442]

13 hours ago, jak3 said:

I do support both the systems because both of them have negative and positive sides. Example of cryptocurrency market are being controlled by the Whales, and downside of the government money is that anyone can create it even if it does not exist in the economy. We have credit cards which allow you to make money from thin air even if Bank do not have that money.

All said correctly. The myth of crypto currency decentralization has long been dispelled. Whales and developers of crypto currencies have more time. In addition, many exchanges are already introducing a mandatory KYC procedure. Special services can already track transactions. The SEC can block any ICO. Decentralization is a myth that is imposed on us so that we can depend on the state and traditional money

[Bitxalt 452]

Cryptocurrencies are very volatile and very difficult to control, I hope that in the future the government will see the development of cryptocurrencies and make regulations so that prices of cryptocurrencies are stable.

[Saqib Ali Sadiq 438]

crypto currencies i prefer as compared to fiat money, because crypto currency will give you more benefits and profits as compared to fiat money, so i will prefer the crypto currencies, and i ma loving it.

[Mohs3n71 0]

On 10/16/2019 at 10:19 AM, Saqib Ali Sadiq said:

crypto currencies i prefer as compared to fiat money, because crypto currency will give you more benefits and profits as compared to fiat money, so i will prefer the crypto currencies, and i ma loving it.

I think this topic is not about profit or investments, it's about usages of this systems in our daily life, to be honest I currently prefer using FIAT in most of the online payments, as it's much easier to pay with and actually has no fee for transactions

[Naga 1250]

The fact that there are only 21 million bitcoins and that no oje else can print more is enough for me because we saw the inflation and all the drama that comes with Fiat and the billions that are printed whenever the government feel they need some liquidity. 

[duncun007 3577]

Yes I know we are all here because of crypto but crypto is still relying on Fiat and we still depending on the system to even take our profits, yes fiat has problems but its still there no matter what we do.

[Bills 583]

There should be no comparison or rivalry, because both represent money, Bitcoin needs to have a value in USD, EUROS, among others, if this ends with what could be compared? Well maybe with gold.

[Khan 1414]

On 10/13/2019 at 1:22 PM, Retno said:

Both fiat and cryptocurrency can't be separated. Fiat controlled by government and central banks, this is why the price keep stable, even tend to be silent, not like crypto, which make us earn profit even we hold it, buta also lose them. 

Yes its true that Fiat currency is controlled by the government and is more stable then Crypto but like Crypto is manipulating by someone same Fiat is also manipulating by someone.

[Bitxalt 452]

6 hours ago, Bmw55 said:

If governments will apply regulations to cryptocurrencies then you can be sure the market will be even worse than it is now because people will have to pay taxes, they will not be able to trade big amounts of money and all of their accounts will be watched by the government

the worst possibility is like that, so how to manage all of this is indeed very difficult, I think, new financial system is needed to provide regulation to cryptocurrencies.

[cryptosix 1643]

What I could say is Crypto will kill Fiat and the Govt may worry about it since These Govt rely on banks money and other things such as Taxes, etc. Crypto also make worries to people because of illegal activities and hacking.

The only thing at the moment is Crypto is a volatile and people still wants it to be volatile only for making profits.

[XiongMengLee 24]

I think bitcoin and other cryptocurrency is better than fiat currency because it is more valuable and more precious, that is why bitcoin is getting more popular everyday that more people are investing and buying in bitcoin and other cryptocurrencies. Fiat currency also takes a long time before it starts to increase it's price, unlike bitcoin it always changes it's price that makes our money increase when bitcoin started to increase it's price.

[Great Commander 659]

Flat currency is mostly used method of transactions around the world and remain the best way for people for payments. On the other hand, bitcoin will usually get prone to hackers if they are implemented to different countries and can result a security breach. 

[PiroSense 2681]

On 10/13/2019 at 1:42 PM, starwill said:

unlike fiat money that can basically be created from nowhere by banks, according to what they consider the economic needs of the nation.

Which in fact is a need and a burden to people. What you're talking about here is the concept of inflation. And the government does this for one sole purpose, and that is: to make people buy today and use their money instead of tomorrow, knowing that the purchasing power of their current funds would decrease.

 

Because in an economy with no inflation, the price would just increase, its purchasing power would increase and thus, people would hesitate to spend funds and instead just hoard, which could start disrupting the economy by halting trades of goods and services.

[MCSGlegend 2210]

Even if cryptocurrencies are popular , Fiat money will have the highest reliability and security, no matter what anyone tells you.