The only common thing between fiat currency and cryptocurrency is that neither of these is a physical commodity. Other than this, there is no similarity between these two forms of currencies.
So, let’s take a look at the differences between fiat currency and cryptocurrency:
- Fiat currencies are controlled by the Government or Central Bank. Cryptocurrencies are not regulated or controlled by any Government authority.
- Fiat currencies can have a surplus supply depending upon the country’s economic needs. Cryptocurrencies have limited supply.
- Fiat currencies can be transferred and tracked worldwide. With cryptocurrencies, there are restrictions on tracking as they are not regulated under any central authority.
- Fiat currencies have third parties involved in transactions. In the case of cryptocurrencies, transactions take place directly between two parties without the involvement of any third party.
- Fiat currency is a physical medium of exchange whereas cryptocurrency is a digital medium of exchange.
- Cryptocurrencies have a higher transaction cost whereas fiat currencies have a comparatively low cost of the transaction.
- Fiat currency is stored in bank accounts. On the other hand, cryptocurrency is stored in digital wallets.
- Those were some of the differences between fiat currency and cryptocurrency. For more finance-related information such as the world’s highest and the world’s lowest currency, keep visiting this website.
See also: Bitcoin Rates | BTC to USD Conversion
