TRADITIONAL MONEY (FIAT) VS CRYPTOCURRENCY (DIFFERENCES AND SIMILARITIES )

We shall start by establishing the main differences between traditional fiat money (Naira, Euros, Dollars, Pounds, etc.) and crypto (Bitcoin, Ethereum, etc.). The main difference would be that crypto is a decentralized and global digital currency, or, in other words, outside the control of the banks and not backed by a central government. As a result, cryptocurrency is immune to the old ways of government control and interference.
Otherwise, there is no fundamental difference. Both fiat currency and cryptocurrency can be called money or currency. Both, in their essence, are mediums of exchange that are used to store and transfer value. Cryptocurrency, as well as fiat currency, can be used to purchase goods and services. Both have their value governed by supply, demand, work, scarcity, and other economic factors. *(e-Zigurat.com).*
#btc #USACryptoTrends

WHAT IS CRYPTOCURRENCY?

A Cryptocurrency is a *digital* currency that operates in a *decentralized* manner and uses *encryption* . In other words, no central bank or government regulates this currency (it is *decentralized!*). It is digital in that it is virtual, not like physical money. And it uses security features (encryption or *cryptography*) in order to avoid counterfeiters, secure transactions, and generate the units of currency (study.com).

#BTC TRADING AND CURRENCIES

Since Time immemorial, trading has been an essential part of human interaction, starting from the earliest form of exchange called the *Barter System (Commonly known as "Trade by Barter")* which reportedly originated from the Mesopotamia tribes and involved the exchange of goods and services for other goods and services. This method was later abandoned due to it's setbacks of not having a common measure of value and being generally an unsatisfactory means of exchange. Consequently, in multiple attempts to fix the aforementioned setbacks and to attain a satisfactory level of exchange, trading went through some iterations, such as: *minting of official currencies, introduction of gold plated florins in Europe and use of Paper currencies, coins, credit cards and digital wallets like PayPal, Amazon pay, Apple pay etc).* All of these are controlled by Banks and Governments and therefore said to be *Centralized.*

see you on the next episode.

#MyFirstFeedPost Hello, Binance Square!