🌐 Fiat Currency vs Cryptocurrency 🌐🖋 By Bernard Ekal
Fiat Currency 🏦:
It’s a government-issued currency used for daily activities like trade and transactions.
Examples: Euro (EUR), U.S. Dollar (USD).
Value controlled by the government and central bank.
Risk of devaluation due to inflation, war, or loss of public trust.
Produced through debt issuance and physical printing.
Cryptocurrency 💻:
Digital, decentralized currency, not controlled by any government.
Examples: Bitcoin, Ethereum.
Value influenced by market demand and volatility.
Produced via mining, like Bitcoin miners receiving Satoshi.
Transactions are irreversible and usually free from transaction fees.
Limited supply, e.g., Bitcoin capped at 21 million coins.
Key Differences 🔍:
Decentralization: Fiat is government-controlled, crypto is decentralized.
Production: Fiat is produced through debt and printing, crypto through mining.
Transactions: Fiat transactions can be reversed in digital form, crypto transactions cannot.
Supply Limit: Fiat can be continuously printed, crypto often has a supply cap.
Importance of Fiat 🌟:
Central banks control money supply, interest rates, and creditability.
Supports national economies and trade.
Conclusion 📌:
Fiat currency is essential for national economies and widely accepted for various transactions.
Cryptocurrencies offer a decentralized alternative with unique features like limited supply and irreversible transactions.
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