Crypto Currency VS Fiat Money: Which one is Better?

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Avatar for Otsowamchodzi
4 years ago

Money is used as a legal tender, it represent the value of goods. The Evolution of money is in 5 stages:

  • Commodity Money

  • Metallic Money

  • Paper Money

  • Credit Money

  • Plastic Money

As we all know time moves fast and we get into different generations and things change, the Era of Commodity money came to an end till we got to paper money. Fiat ruled and its times will come to pass and we will all embrace the Cryptocurrency or its phase will not come to an end but it will be used less. Fiat may be spared for the sake of the old age, and those who do not have the privilege to use the internet. If we are to advise someone which form of money to adopt it will be wise to lay down the main difference, disadvantages, and advantages.

Fiat Money:

  • It is issued by the government

  • It has an unlimited supply and if produced in large quantities this may fuel the inflation rate

  • It is centralized which means it is controlled by the state and banks

Cryptocurrency:

  • Its supply is limited this can help in stabilizing the price

  • It is produced by computers

  • Supply and demand determine its value

  • It is not controlled by entities or government

From my own point of view Crypto is the future because u can transact any amount and send across boarder without limitations and in a few seconds. The only disadvantage is the value is not fixed its variable e.g u can buy $100 worth of bitcoins and maybe after a few days you will be shocked to see the values depreciates or appreciate.

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Avatar for Otsowamchodzi
4 years ago

Comments

Nice article. Very soon we will not be seeing fiat currencies anywhere again. The crypto currency will take over and rule the world

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4 years ago