Fiat Money vs. Cryptocurrencies

[axelmoore 11]

I fully agree with the author's statement. Money is an unlimited issue of paper. And crypto is decentralized and limited in its output. It seems to me that very soon the cryptocurrency will be accepted by society.

[bboycico 20]

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
We cannot deny the advantages and popularity that cryptocurrencies are. However, it has not been accepted by many governments in other countries

[setifien 1016]

Both Fiat and cryptocurrencies have own caracteristics, and have different usages according to these caracteristics; but I think crypto currencies are more usefull since they are easy to deal with (send and recieve them in short time)

[Poezdec 1]

When the cryptocurrency is accepted by the world later, it will replace other money, but while this is not the case, I can say that at this stage, cash is more useful.
The problem is that governments need to control digital currency in order to tax it.
For me, the advantage of the crypt was that their price could increase in the future, but at the same time it was their problem because the price could collapse.

[okboomer24 26]

Fiat money is much more convenient in everyday life. Cryptocurrency is suitable for risky investments. Personally my opinion

[Evgenij413 17]

Personally, I am for cryptocurrency. For me, this is very convenient, since cash can be stolen, it is less secure. It is much more difficult to steal cryptocurrency, so I made my choice in favor of cryptocurrency.

[sarahmoses202020 251]

There are lots of similarities and also differences between crypto and fiat. Crypto is virtual and isn't issued like the fiat counterpart. There are no double spending issues with regards to crypto. You also are limited by borders when it comes to crypto. Crypto is the whole world's currency.

[mesmes 26]

hi everyone

I hope that one day crypto will replace fiat currency
but to get to this stage there is a long way to go

 

have nice day 🙂

 

 

[Saiferius 20]

Probably 50/50, I think you shouldn't transfer everything to cryptocurrency, because it is not stable. I think you need to have as much in cryptocurrency as you do not mind losing. Because there are risks in this.

[Gluttony 1775]

This is actually my insights on why crypto currency and fiat currency should coexist since they share different prospects for each other. I do not know why there are other people trying to say and hoping somehow that the crypto currency will prevail as the dominant one compared to the fiat currency and would be the possible reason why it would not last long. That was based on other users’ perspective, but I think they are just greedy enough to think that they could see the price of the crypto currency would go high because of the disappearance of fiat currency and there would be no competition that would happen. I think if ever this thing might happen that the fiat currency would be replaced by crypto currency, I think that crypto would be responsible to increase their volume of coins in the market since it would be the next currency that other countries might use as their legal tender.

[Molander 13]

What I like best is digital currency between Fiat Money and digital money, in light of the fact that winning in digital currency is simple and can be earned in a brief timeframe.

[hasaan 289]

The main divider between fiat and the crytpo is the legal  term, the btc is a great idea for the financial system but its not accepted by the country. The behind factor of the legality is that the btc is not centralize that's why its very tough to monitor the transaction. 

[Bond07 166]

On 10/13/2019 at 11:42 AM, starwill said:

While fiat money is controlled by governments and central banks, cryptocurrencies are essentially decentralized, largely thanks to a digital accounting book (ledger) called Blockchain.

This is the part of bitcoin which i love most. If a whole nation goes against the crypto and want to destroy it , they will be able to do nothing hahaha. its 100% secured in this sense

[bra231997 215]

On 10/13/2019 at 2:42 AM, 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.

excellent comparison between the two, thanks

[satella17 65]

On 10/13/2019 at 12:42 AM, 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.

for me both are equally useful and more if you want to earn more doing trade so you can work with btc and usdt

[Alex9876r 1408]

Each of them has the advantage of centralized and controlled valves, and encrypted servers are decentralized and uncontrolled Thus, looking at these currencies separately is illogical, as we are currently using the two to buy our needs and manufacture or other things, but the cryptocurrencies that are distinguished by them are the new technologies of blockchain and smart contracts.

[Joli7 25]

Cryptocurrencies will gradually replace fiat money, as technology is advancing, there are more and more cryptocurrencies and it is increasing its uses to pay for many things.

[prabesh2058 171]

Thats a great information.

We also include tthe fact that cryptocurrency are way more volatile than fiat Currency. Holding fiat cryptocurrency is not a investment option but we can get a lot of profit from cryptocurrency.Being volatile cryptocurrency have a very unpredictable price and most of the time its price is increased.

 

Similarly fiat currency transactions can be traced but there is no way to trace the transaction of cryptocurrency because they are totally anynomous.

But the main thing that makes difference is that fiat Currency is acceptabl everywhere but cryptocurrency is not widely accepted but also its illegal in few countries. 

[yonkii 3205]

I read the post and it was enlightening. I thank you my dear friend for all this incredible information you brought with us.

On 10/13/2019 at 8:42 AM, starwill said:

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

This though is wrong it is not the banks that create the fiat money but the Central Bank of each nation. Although the private banks create too extra money using the loan system and the limit of reserves of 8-10% of the money deposited to them. So maybe you are correct here without knowing it though.

[annayks 2314]

You tried to explain a lot but most are not actually needed. Fiat money is government money they can print eternally until hyperinflation hits. When this happens they remake their currency and start all over. This is a game that happens for thousands of years and even in ancient Rome the collapse started because of problems with their currency.

[cryptovlek 2597]

This post is a little strange having word connections I haven't read anywhere else as physical merchandise and monetary mass.

This is a common problem with translators. These terms are not correct but translators don't understand this. This is why you should learn english and not use incorrect phrases that we don't use in crypto or in economics.

[Michar1 1693]

Undoubtedly cryptocurrencies are more recommended to use, of course that fiat money is currently the term for which money is used, because not all services accept payments with cryptocurrencies, perhaps later the payment in crypto will be accepted, then it will be different the case.

Edited November 14, 2020 by Michar1

[Chandan Mandal 332]

Yes we know how much popular and profitable this forum and from my side it is the greatest forum for earning digital currencies and I hope that more governments of the different countries will allow this forum and increase the use of digital currency 

[kryptonick 2659]

You have given well described criteria of the categories of money as fiat and crypto. I enjoyed your post and there are many more that we can all use additionally to improve this good post. The fact of the fiat currencies being universally accepted as you said. This is wrong they are accepted within limits. We don't accept dollars in europe and americans do not accept euro. This is not a problem for Bitcoin.

[Viscount 1357]

Some people here in the forum are saying that cryptocurrency might takeover fiat currency. But I don't see that cryptos will takeover fiat. Cryptocurrency might become the most used alternative payment method in the near future but it will definitely not replace fiat currency.