A fiat currency or fiat currency is a type of currency that is issued and backed by a government or central authority. It is considered fiat because its value is not backed by a tangible asset, but is established by the central authority that issues it and is accepted as a means of payment in the territory in which it is used. Examples of fiat currencies include the U.S. dollar, the euro and the yen.
A cryptocurrency, on the other hand, is a type of digital currency that relies on cryptography to secure transactions and control the creation of new units. Cryptocurrencies are decentralized, meaning they are not controlled by a central authority such as banks or governments. Instead, they rely on a decentralized network of computers that verify and record transactions. Examples of popular cryptocurrencies include Bitcoin, Ethereum and Litecoin.
One of the main differences between fiat currencies and cryptocurrencies is the degree of decentralization. While fiat currencies are issued and controlled by a central authority, cryptocurrencies have no central authority and are controlled by a decentralized network of computers. In addition, cryptocurrencies usually have a limited supply, whereas fiat currencies can be printed in unlimited quantities by the central authority that issues them.
What is the main difference between a Fiat Currency or Trust Currency and a Cryptocurrency?
