FIAT VS CRYPTOCURRENCY??

Hello everyone, today will be the least edition of the Blockchain 101 series. I am gladdened when I read comments from people that they learnt something from the series that they didn't previously know. It warms my cold heart 😏😏. But everything that has a beginning has to have an end, so the series ends today. To end the series, we will examine the differences between Government backed FIAT and Cryptocurrency. Let's delve right into it guys.

Fiats are traditional currencies which are printed in paper form now. We've had Fiats in a wide range of forms, from cowries used in Africa used for payments, to coins in ancient times and still used in some places today, to polymer notes which were used in some countries in Africa including Nigeria and paper money. Fiats are printed and backed by Governments. So the United States of America's Government prints and backs the US Dollars, just the same way the British Government will print and back the GB Pounds. Cryptocurrency on the other hand is a digital form of currency, meaning it is not printed and not backed by any Government. It is peer-to-peer meaning that it doesn't encourage third party controls and is based on the Crypto algorithm. So what are the differences that exist between these two forms of payment and transaction 🤔🤔

First, and probably the biggest difference is that FIAT are prone to inflation. Governments have repeatedly not learnt from history, and they print limitless FIAT and this production always ends in an inflation which crashes the value of the FIAT. Cryptocurrency on the other hand doesn't follow this principle, each Cryptocurrency has a limited supply of the coin or token in circulation and this creates a kind of demand fighting the problem of Inflation that FIAT always battle with.

Second, Cryptocurrency offer faster settlement times than their FIAT counterparts. When transferring FIAT cross-country it could sometimes take hours and even days to get to the recipient. But Bitcoin which is even hated by many to be slow takes about 10 minutes or more depending on the amount being sent. While it's much faster counterparts like XRP, DASH, and even Doge can take mere seconds to go from the sender to the receiver anywhere around the world.

The final difference I will mention is that Cryptocurrency offers immense user freedom as compared to FIAT. Cryptocurrency allows for a lot of anonymity, and offers immense user-freedom due to its lack of third-party authority approving transactions. This however has given many the wrong impression that Cryptocurrencies are used for criminal purposes.

I sure hope you've learnt a thing or two about the benefits of Cryptocurrency to FIAT. From me, it's Ciaos adiós amigos 😘😘.