Difference Between Fiat Currency and Bitcoin

[Helena Yu]

The conclusion is you're pointing Bitcoin is decentralized, but unfortunately most people use Bitcoin like a centralized asset e.g. hold their coins in Binance. It's really sad how Satoshi invents something, but people didn't even care with the purpose.

5.Transaction cost of fiat currency is low.

5.Transaction cost of bitcoin is high.

It's only happen if you exchange at the same country, but if you're exchange from different country, Bitcoin fees is cheaper and faster than banks.

For me the big difference between Fiat currency like banknotes/ coins and Cryptocurrencies is in the requirement for electricity to use crypto. Fiat works always....

If the world lost electricity and internet, the problem isn't only happen for Bitcoin holder, but it's a total chaos to the entire countries.

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[pakhitheboss]

@Fiasem20 The first thing you should learn is how to use BBcode for creating a table. If not then your post would not look suitable to read as your existing post is looking now. I won't be going into BBcodes as if you do a general search on Google you would easily find a tutorial about it. Frankly, I did not read your post as the way it has been presented does not interest me to go through it.

As per your title, I would say the biggest difference between Bitcoin and any fiat currency in the world can be only understood when anyone understands the difference between centralized control and decentralized control. A fiat currency is controlled by a central entity, typically the government, whereas Bitcoin is not controlled by any central entity. Its value is determined by the community.

[bobbybkk]

The conclusion is you're pointing Bitcoin is decentralized, but unfortunately most people use Bitcoin like a centralized asset e.g. hold their coins in Binance. It's really sad how Satoshi invents something, but people didn't even care with the purpose.

5.Transaction cost of fiat currency is low.

5.Transaction cost of bitcoin is high.

It's only happen if you exchange at the same country, but if you're exchange from different country, Bitcoin fees is cheaper and faster than banks.

For me the big difference between Fiat currency like banknotes/ coins and Cryptocurrencies is in the requirement for electricity to use crypto. Fiat works always....

If the world lost electricity and internet, the problem isn't only happen for Bitcoin holder, but it's a total chaos to the entire countries.

OK a real world example: 

I prefer to pay in cash and I had a co-worker who always payed with a credit card.  One day in the canteen the card reader was not working, so no food for the co-worker, but food for me....I gave my co-worker a "loan" in cash  so he could feed himself....

In this regard Bitcoin is similar to credit cards...

So technical issues are not always the end of the world 

[AakZaki]

OK a real world example: 

I prefer to pay in cash and I had a co-worker who always payed with a credit card.  One day in the canteen the card reader was not working, so no food for the co-worker, but food for me....I gave my co-worker a "loan" in cash  so he could feed himself....

In this regard Bitcoin is similar to credit cards...

So technical issues are not always the end of the world 

There will be other supporting alternatives and Bitcoin is a guarantee if it still doesn't work properly.
Of course the electricity will not always go out or the internet will disappear, the government has thought about this and there will not be a total power outage, it will still be alive.
Moreover, if the Earth were truly completely dead, it might no longer have any inhabitants or be abandoned by its inhabitants and be the end of everything.

[Rayan Oscar]

1.Fiat currency is accepted worldwide as a legal tender.

1.Bitcoin is a decentralized digital currency that is not accepted in most countries as a legal tender.

Yes it might appear not acceptible in some countries but it doesn't stop it's usage as it operates digitally only. Bitcoin is unstoppable💯😎

3.Fiat currency has an unlimited supply.

3.Bitcoin has a limited supply.

Yes of cause an this contributed to the continuous grouth of Bitcoin

[glendall]

point 7, bitcoin cannot be destroyed
in crypto there is a term burning here the aim is to reduce the supply of certain coins, for the purpose of increasing the price of certain coins the burning is carried out. In my opinion this is the same as destruction

[harapan]

Some of what you have mentioned as similarities and differences can actually be only applied to bitcoin a lot of the replies have already mentioned what you should change but i would like to add that the main difference between fiat and cryptocurrencies is that fiat is issued by the government meanwhile cryptocurrencies are operating on a technology called blockchain

Maybe you should start introducing bitcoin first and its differences with fiat because almost all other cryptocurrencies are just derived from bitcoin itself other cryptocurrencies aside from bitcoin are already called altcoins and even though a lot of these cryptocurrencies are like i said derived from bitcoin, some of them still have some distinct features like how some altcoins are not decentralized and many more

In most cases,it is clearly stated that whatever has a good feature also has a bad feature.Most of us use fait currency while some make use of bitcoin to carryout thier transactions.One thing I admire greatly about cryptocurreny Is the authenticity and uniqueness that it possess.
  While fait currency suffers issues like counterfeit and replication of fait currency,bitcoin doesn't have to be replicated;it cannot be faked as it remains in its unchanging state.
 It's essential to recognize that cryptocurrencies and fiat currencies need not be in a competition,cryptocurrencies emergence has really transformed the world let's just understand the unique features of both of them to co-exist for a financial balance.

[Silver005]

The main difference between fiat currency and Bitcoin is that fiat currency is backed by a government or central bank, while Bitcoin is decentralized and not backed by any single authority. Fiat currency is usually issued in physical form, such as banknotes and coins, and is regulated by a central bank. It can be used to pay for goods and services, and its value is determined by the government that issues it. Bitcoin, on the other hand, is a digital currency that is not issued by a central bank or government. It is created through a process called mining, and its value is determined by supply and demand. Bitcoin can be used to pay for goods and services, and it's not widely accepted as form of payment....



goods and services, but it is not widely accepted as a form of payment. Another difference is that fiat currency is inflationary, meaning that its value decreases over time. Bitcoin, on the other hand, has a fixed supply and cannot be inflated. This is one of the main reasons why some people view Bitcoin as a hedge against inflation. Finally, fiat currency is regulated by governments and central banks, while Bitcoin is not subject to any such regulation. This can be both a strength and a weakness of Bitcoin, as it means that its value is not subject to manipulation by central authorities, but it also means that there is no guarantee of its service..

[GeorgeJohn]

From day one bitcoin is been launched its very clear that the margin between bitcoin and fiat currency is not close or similar, because bitcoin is a digital currency and also a decentralized one, whereas fiat currency is a currency that have to do with tradition and government is been use fiat currency,  bitcoin is newly currency that fluctuates in value and its value maybe appreciate or neither downgrade at any point in time, so therefore it's quite well that the currency is different from bitcoin, we don't know how long bitcoin can stay or it will be abolish base on it ways, whereas fiat currency will remain to reign

[bobbybkk]

I think the big problem is the relation between fiat and Bitcoin:

Short term transaction - here I see no problem. Lets say I want to send 100 USD from Europe to a friend in the US, then I can buy Bitcoin, send them to the firend and the friend converts it back to USD, apart from fees no major risk of losses.


Middle term transaction for services- If I get my salary in USD but have a contract for my rent stating a fixed anount of bitcoin, this can lead to major issues, because if the price for Bitcoins doubles, the amount of USD from my salary to pay for rent doubles too...

Longterm vIew : If I make savings for lets say to buy a house, in fiat I can take into account a kind of average inflation rate for my savings and plan with it. With Bitcoin the amount I get in USD for example when I want to buy the house, depends purely on possible wide swings of the Bitcoin price at the time I need the money. Can go in my favor, but also maybe massively against me...

[Assface16678]

The conclusion is you're pointing Bitcoin is decentralized, but unfortunately most people use Bitcoin like a centralized asset e.g. hold their coins in Binance. It's really sad how Satoshi invents something, but people didn't even care with the purpose.

5.Transaction cost of fiat currency is low.

5.Transaction cost of bitcoin is high.

It's only happen if you exchange at the same country, but if you're exchange from different country, Bitcoin fees is cheaper and faster than banks.

For me the big difference between Fiat currency like banknotes/ coins and Cryptocurrencies is in the requirement for electricity to use crypto. Fiat works always....

If the world lost electricity and internet, the problem isn't only happen for Bitcoin holder, but it's a total chaos to the entire countries.

OK a real world example: 

I prefer to pay in cash and I had a co-worker who always payed with a credit card.  One day in the canteen the card reader was not working, so no food for the co-worker, but food for me....I gave my co-worker a "loan" in cash  so he could feed himself....

In this regard Bitcoin is similar to credit cards...

So technical issues are not always the end of the world 

Fiat currency of crypto currency they have both pros and cons so no matter what arguing we do it depends on the people what currency they will use, but one thing's for sure even crypto currency become powerful in the future fiat currency will still be around because we can't replace it, its like an alternative currency when things go bad or if there is a problem when using digital currency, as I said both currencies have pros and cons, digital currency rely on electricity and internet what if there is a phenomenal that will wipe both these things? How could we access our digital currency? While in fiat, fiat currency is a tangible currency so it is prone from being destroyed or lost. So from there we can also see the big difference of these two currencies, it will depends on the people on what they will use and what is more convenient for them.

[Rehan Zakir]

You have discuss a detail comparison between fiat currency and Bitcoin.
Bitcoin is a digital currency their price changes continuously, but fiat currency is a stable coin.. I am not criticizing any of the currency. But both currencies are essential for us.

[Benedictare]

Fiat currency is the money given out by governments of various countries, they are in physical form that can be held by every individuals. Fiat currency is a legal tender which are supported and it's value is attached to the currency signed by the government and controlled by central banks,i.e being centralized and stable. While Bitcoin transaction is decentralized P2P and not regulated and controlled by anyone or government instead been supplied automatically increased and distributed currency around the world, Bitcoin is a virtual currency and a digital asset which gets it's asset value from it's native blockchain also officially controlled by blockchains, computer code,it's value can change in large amount .

[Shamm]

You have discuss a detail comparison between fiat currency and Bitcoin.
Bitcoin is a digital currency their price changes continuously, but fiat currency is a stable coin.. I am not criticizing any of the currency. But both currencies are essential for us.

Fiat money is very good cause it will use us in our daily needs and wants, also fiat use as our salary so the government is allowed all countries have fiat. While Bitcoin is a digital currency and most of it is for investment cause we all know that if we are investing in Bitcoin we have a lot of profits in a long run . Anyways but crypto currencies are good enough and it will become much better if we have that two fiat and crypto.

[MFahad]

Good comparision. But:

1: Bitcoin is now getting more adoption and it is accepted as a legal tender of one country "El Salvador"
5: Bitcoin has a high transaction fee that is true. but sometimes fiat currency transaction fee are way higher than Bitcoin. some Banks charge higher to send funds to another bank.
6: Fiat currency can be stored in a person's physical wallet too. and can be stored in his home safe deposit

also your thread needs to be formated properly. it is a bit difficult to read it.

[Nangiconference]

Fiat currency is a currency issued by the government while Bitcoin is a decentralized digital currency that uses the blockchain network-(A digitalized ledger that records transaction across the network of computers).In this thread I'll list the difference between fiat currency and bitcoin in a tabular form.

Fiat Currency	Bitcoin
1.Fiat currency is accepted worldwide as a legal tender.	1.Bitcoin is a decentralized digital currency that is not accepted in most countries as a legal tender.
2.Controlled and managed by central bank.	2.Bitcoin operates without the involvement of third party like the central bank.
3.Fiat currency has an unlimited supply.	3.Bitcoin has a limited supply.
4.Fiat currency is a physical means of exchange for example coin,bank note etc.	4.Bitcoin is a digital means of exchange for example it uses the peer to peer-(P2P).
5.Transaction cost of fiat currency is low.	5.Transaction cost of bitcoin is high.
6.Fiat currency is stored in a person's bank account.	6.Bitcoin is stored in a person's digital wallet.
7.Fiat currency can be destroyed physically for example it can be burnt.	7.Bitcoin can't be destroyed physically because it is stored in a digital wallet.

In the first place, I must say this article has been able to expose the difference between the latter and the sooner. However it is pertinent to say that although fiat is accepted anywhere and anytime which makes users transact comfortably, you will have to consider portability. Fiat could not be as portable as bitcoin for example carrying huge cash about, while bitcoin does not require meeting or traveling before payment can be made.

[Xal0lex]

Fiat currency is a currency issued by the government while Bitcoin is a decentralized digital currency that uses the blockchain network-(A digitalized ledger that records transaction across the network of computers).In this thread I'll list the difference between fiat currency and bitcoin in a tabular form.

You've got a spoiled table. It's not your fault, it's a feature of the forum engine in displaying tables. Edit your post, replace what you have now in your post with what is written in my quote and you will have a normally displayed table.

Code:

[table]
[tr]
[td][/td]
[td][b]Fiat Currency [/b][/td]
[td][b] Bitcoin [/b][/td]
[/tr]
[tr]
[td][/td]
[td]
1.Fiat currency is accepted worldwide as a legal tender.
[/td]
[td]
1.Bitcoin is a decentralized digital currency that is not accepted in most countries as a legal tender.
[/td]
[/tr]
[tr]
[td][/td]
[td]
2.Controlled and managed by central bank.
[/td]
[td]
2.Bitcoin operates without the involvement of third party like the central bank.
[/td]
[/tr]
[tr]
[td][/td]
[td]
3.Fiat currency has an unlimited supply.
[/td]
[td]
3.Bitcoin has a limited supply.
[/td]
[/tr]
[tr]
[td][/td]
[td]
4.Fiat currency is a physical means of exchange for example coin,bank note etc.
[/td]
[td]
4.Bitcoin is a digital means of exchange for example it uses the peer to peer-[b](P2P)[/b].
[/td]
[/tr]
[tr]
[td][/td]
[td]
5.Transaction cost of fiat currency is low.
[/td]
[td]
5.Transaction cost of bitcoin is high.
[/td]
[/tr]
[tr]
[td][/td]
[td]
6.Fiat currency is stored in a person's bank account.
[/td]
[td]
6.Bitcoin is stored in a person's digital wallet.
[/td]
[/tr]
[tr]
[td][/td]
[td]
7.Fiat currency can be destroyed physically for example it can be burnt.
[/td]
[td]
7.Bitcoin can't be destroyed physically because it is stored in a digital wallet.
[/td]
[/tr]
[/table]

	Fiat Currency	Bitcoin
	1.Fiat currency is accepted worldwide as a legal tender.	1.Bitcoin is a decentralized digital currency that is not accepted in most countries as a legal tender.
	2.Controlled and managed by central bank.	2.Bitcoin operates without the involvement of third party like the central bank.
	3.Fiat currency has an unlimited supply.	3.Bitcoin has a limited supply.
	4.Fiat currency is a physical means of exchange for example coin,bank note etc.	4.Bitcoin is a digital means of exchange for example it uses the peer to peer-(P2P).
	5.Transaction cost of fiat currency is low.	5.Transaction cost of bitcoin is high.
	6.Fiat currency is stored in a person's bank account.	6.Bitcoin is stored in a person's digital wallet.
	7.Fiat currency can be destroyed physically for example it can be burnt.	7.Bitcoin can't be destroyed physically because it is stored in a digital wallet.

[legiteum]

1.Fiat currency is accepted worldwide as a legal tender.

1.Bitcoin is a decentralized digital currency that is not accepted in most countries as a legal tender.

What actual real-world difference does that make? In most countries (say like the USA) it's perfectly legal to buy things with Bitcoin. What you seem to be asking for here is that you want a central government to force people to use Bitcoin. I'm not sure anybody is going to do that, nor would we want them to.

4.Fiat currency is a physical means of exchange for example coin,bank note etc.

4.Bitcoin is a digital means of exchange for example it uses the peer to peer-(P2P).

Sovereign currency can (and usually does) have a physical manifestation, but most money (in terms of dollar volume) is actually moved around digitally these days.

6.Fiat currency is stored in a person's bank account.

6.Bitcoin is stored in a person's digital wallet.

Most people who invest in crypto use a central entity like CoinBase or Binance or their brokerage account. Most people don't like the idea of being able to physically lose a big chunk of their life savings, and instead want somebody else to physically guard it for them, and to base their access based on their identity.

People usually only like physical cash when it's a small part of their wealth e.g. the money inside of their wallet. And they do this for the convenience of being able to make cash payments.

7.Fiat currency can be destroyed physically for example it can be burnt.

7.Bitcoin can't be destroyed physically because it is stored in a digital wallet.

Bitcoin can be permanently lost which is the same as destroying it. Indeed, we actually have no idea how much actual spendable Bitcoin exists in the world, and it's likely less than the theoretical supply and it might even be a lot less.