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 centralized 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. In this lesson, you will learn the difference between cryptocurrencies and fiat money. Cryptocurrencies and conventional currencies have two essential features: they enable frictionless payments between two parties and act as a store of value. While trust vested in fiat currencies is ensured through the money supply issued by a central authority, the trust vested in cryptocurrencies is fo...
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