Fiat Currency vs Cryptocurrency

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:

  1. Fiat currencies are controlled by the Government or Central Bank. Cryptocurrencies are not regulated or controlled by any Government authority.
  2. Fiat currencies can have a surplus supply depending upon the country’s economic needs. Cryptocurrencies have limited supply.
  3. Fiat currencies can be transferred and tracked worldwide. With cryptocurrencies, there are restrictions on tracking as they are not regulated under any central authority.
  4. 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.
  5. Fiat currency is a physical medium of exchange whereas cryptocurrency is a digital medium of exchange.
  6. Cryptocurrencies have a higher transaction cost whereas fiat currencies have a comparatively low cost of the transaction.
  7. Fiat currency is stored in bank accounts. On the other hand, cryptocurrency is stored in digital wallets.
  8. 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.