Cryptocurrency is an electronic means of payment. At its core, it is a program code and has no physical counterpart in real life. Cryptocurrency is not backed by anything, like fiat money, but otherwise it differs significantly from them in many ways.

Traditional banknotes are issued by the central banks of countries. At the same time, the output is not limited, which subsequently inevitably leads to inflation. Cryptocurrency (at least most of its types) has a limited emission, due to which it does not depreciate, but, on the contrary, grows in price over time. And it is produced not by the only center, but by everyone.

Fiat release form can be presented in paper, metal, plastic, electronic form. Cryptocurrencies exist only on the Internet. This is not a big loss, considering that today almost all payments can be made online and more and more services and stores connect the possibility of cryptocurrency payments.

The management of Fiat is completely controlled by the government. Its release and distribution are regulated by law, an ordinary person cannot influence this process. And digital blockchain systems are usually managed by the community, all changes are made to it only after the vote of the network members. There is not a single center in whose hands the system is.

Commissions and speed During transactions with cryptocurrency, the costs of transferring funds abroad are much less than banking ones. In addition, payments are made faster.

Anonymity This factor is of particular concern to governments and at the same time involves users of cryptocurrencies. Here it is difficult to determine the belonging of any transaction or wallet to a particular person, although it cannot be said that this is impossible.

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