stevehacks (@stevehacks)

How Does Crypto Compare to Fiat Currency? Bitcoin is the first cryptocurrency. It displays all the properties of a fiat currency system. A bitcoin is a scarce and non-renewable resource. It is also impossible to fake, as it is so difficult to double-spend a bitcoin. Essentially, it is impossible to spend the same bitcoin twice, creating a duplicate record. Unlike a traditional currency, however, the value of a bitcoin is limited, making it a valuable form of investment. Cryptocurrency is also more secure than fiat currency, as it acts as a store of value and is not controlled by a central bank. In contrast, fiat currency is issued by governments and has no intrinsic value, which means that the value can be lost if the government has to default on the debt. As a result, it is far more difficult to counterfeit a cryptocurrency. But with time, cryptocurrencies have become more secure, with increased consumer protection. Another difference between cryptocurrencies and fiat currencies is their security. While fiat money is created by banks and declared legal tender, it has no inherent value. Banks and government agencies create money by issuing loans. Imagine if there were no loans, there would be no US dollars in circulation! But cryptocurrencies are based on a decentralized ledger and are therefore far more difficult to copy or counterfeit. While fiat currency has the advantage of being safer, it lacks the trust and anonymity of a digital currency. Transactions made with a cryptocurency are anonymous and can be tracked. While the supply of fiat currency is virtually infinite, cryptocurrencies have a limit to their supply. Furthermore, a cryptocurrency's supply is regulated by an algorithm, unlike fiat money. In addition, a cryptocurrency has no centralized authority and no central bank. See more at http://stevehacks.com