Topic: Fiat and crypto are staggeringly different (Read 210 times)
Fiat currencies are generally accepted by all humanbeing while crypto accepted by few.Fiat currencies control by government while crypto is decentralized ie individual is privileged to control is money.
but it will not happen soon, because the one who owns a printed USD machine will prevent the development of crypto.
That is a good article for school students. This theme is so big it is impossible to even compare in one article. Let us compare only from one point of view.
Bank (let us be simple) is printing money and adressing them into economy (by different mechanisms). If bank is printing too much - inflation. If bank prints not enough - deflation. This system has a lot of advantages and 2 main problems. 1 - constant inflation due to the increase of the overall money supply, 2 - more and more money are accumulated by the richest and either do not work for the economy, or work very specifically (stock exchange, return on capital). At some point there is a system problem when returns on the capital are becoming too low. Nobody generally knows what to do in such situation but BTC at least is solving one problem - it gives profit for capital because of it's deflationary nature and it gives control on the realization of the transaction. Also all those coins are the money substitutes in economical terms. But they are also developing new technology at the moment.
Bank (let us be simple) is printing money and adressing them into economy (by different mechanisms). If bank is printing too much - inflation. If bank prints not enough - deflation. This system has a lot of advantages and 2 main problems. 1 - constant inflation due to the increase of the overall money supply, 2 - more and more money are accumulated by the richest and either do not work for the economy, or work very specifically (stock exchange, return on capital). At some point there is a system problem when returns on the capital are becoming too low. Nobody generally knows what to do in such situation but BTC at least is solving one problem - it gives profit for capital because of it's deflationary nature and it gives control on the realization of the transaction. Also all those coins are the money substitutes in economical terms. But they are also developing new technology at the moment.
To add to that:
Cryptocurrency = Commodity
Fiat = Necessity
For that also since fiat currency is controlled by the government and its transactions which is centralized and stable which is being used for centuries then it would have an advantage as of the moment. However if people starts to turn to cryprocurrency and make is as a necessity rather than a commodity then its prices will then stabilize.
Yes that when everyone starts to regard crypto as a commodity crypto prices will be stable and more trusted by many people. By calculation then we are currently in an era of change where we have begun to gradually use crypto as a means of payment. The more people who have started to recognize crypto and if it continues to be maintained then this will lead us to a much higher era, digitalization is indeed a goal we all because of the increasing technology has made us are in an age that requires the existence of a mobility. so that the financial sector becomes one of the things that should indeed evolve.Cryptocurrency = Commodity
Fiat = Necessity
For that also since fiat currency is controlled by the government and its transactions which is centralized and stable which is being used for centuries then it would have an advantage as of the moment. However if people starts to turn to cryprocurrency and make is as a necessity rather than a commodity then its prices will then stabilize.
As long as we can continue to use crypto then I am very optimistic that cryptocureency can be a commodity.
Apparently, the crypto currency will supplant the fiat from turnover, but it will not happen soon, because the one who owns a printed USD machine will prevent the development of crypto.
yes fait is government own they can increase and decrease whereas crypto is people own decentralised they control their currency
To add to that:
Cryptocurrency = Commodity
Fiat = Necessity
For that also since fiat currency is controlled by the government and its transactions which is centralized and stable which is being used for centuries then it would have an advantage as of the moment. However if people starts to turn to cryprocurrency and make is as a necessity rather than a commodity then its prices will then stabilize.
Cryptocurrency = Commodity
Fiat = Necessity
For that also since fiat currency is controlled by the government and its transactions which is centralized and stable which is being used for centuries then it would have an advantage as of the moment. However if people starts to turn to cryprocurrency and make is as a necessity rather than a commodity then its prices will then stabilize.
To my mind, what set's apart a good cryptocurrency from fiat money can be summarized with these two main keywords:
1. censorship resistance
2. ability to function in a trustless environment
Fiat money is not censorship resistance and we have to trust our governments with it. The moment a cryptocurrency loses these two features, it's not much different from fiat.
1. censorship resistance
2. ability to function in a trustless environment
Fiat money is not censorship resistance and we have to trust our governments with it. The moment a cryptocurrency loses these two features, it's not much different from fiat.
Great read about the differences between crypto and fiat: https://medium.com/algebraix-data/fiat-and-crypto-are-staggeringly-different-part-1-316c9d04d3f3
Thoughts?
Thoughts?
General points which simply separate or differentiate both things:
Centralized vs Decentralized
Stable vs Volatile
Physical Form vs Digital
With just having these points you can figure it out with our common sense.
you forgot supply factor also .
fiat have unlimited supply and banks can print it any amount they want (they may say they back it but most of people doubt it) also USD is not backed .
while bitcoin , ethereum etc have maximum total supply that can be created , current total supply , circulating supply , everything is clear .
major difference is only that govt control fiat currency and this is the reason we can face economic crisis anytime .
satoshi invented bitcoin after american crisis a decade back . he believed that people should have power to control their own money .
bcoz printing fiat with unlimited supply pose big risk .
satoshi invented bitcoin after american crisis a decade back . he believed that people should have power to control their own money .
bcoz printing fiat with unlimited supply pose big risk .
Great read about the differences between crypto and fiat: https://medium.com/algebraix-data/fiat-and-crypto-are-staggeringly-different-part-1-316c9d04d3f3
Thoughts?
Thoughts?
General points which simply separate or differentiate both things:
Centralized vs Decentralized
Stable vs Volatile
Physical Form vs Digital
With just having these points you can figure it out with our common sense.
Great read about the differences between crypto and fiat: https://medium.com/algebraix-data/fiat-and-crypto-are-staggeringly-different-part-1-316c9d04d3f3
Thoughts?
Thoughts?
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