What's the difference between a cryptocurrency like Bitcoin and fiat money?
Categories: Crypto News US
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What's the difference between a cryptocurrency like Bitcoin and fiat money?
Cryptocurrencies share many similarities with conventional fiat money, but also offer some interesting advantages.
- Both can be used for payments and as a store of value
- Both rely on widespread consumer trust in order to function as a means of exchange.
- Fiat money is issued and controlled by (central) banks and governments.
- Bitcoin is produced and distributed through a process called mining and is not controlled by a centralised authority.
- Bitcoin can be trusted because it is tamper-proof and cannot be spent twice.
- A Bitcoin transaction cannot be reversed, cancelled or charged back.