Difference Between Fiat Currency and Bitcoin

[Fiasem20]

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.

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[Ambatman]

I will like to imagine when you said cryptocurrency, you were talking about Bitcoin if not then
1. Not all cryptocurrency are decentralized
2. Some cryptocurrency operates only with the involvement of third party.
3.Not all cryptocurrency have limited supply e.g Ethereum.

You know what
Just change the cryptocurrency to Bitcoin
Because is like you giving the difference between Fiat currency and Bitcoin.

[I_Anime]

Hmmm nice, the beauty of cryptocurrencies just too epic mostly when comes to privacy 😜.

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

Yeah but if you misplaced that digital wallet seed phrase you also end up losing all your cryptocurrencies asset. Though I mostly prefer keeping most of my funds in cryptocurrencies (expecially bitcoin) than leaving it in fiat. Just got to still keep some back up funds with you due to some expected expenses or unexpected ones.

Cyptrocurrency is a decentralized digital currency that is not accepted in most countries as a legal tender

.as time goes on this won't longer be among the stuff that differs fiat from cryptocurrencies. Because cryptocurrencies are gradually evolving and more region are now involving in it. So a time would come when cryptocurrencies would finally accepted worldwide and bitcoin is helping in speeding that process.😁

[Fiasem20]

1. Not all cryptocurrency are decentralized

Of course yes I know not all cyptrocurrency are decentralized if you could the thread again you'll see where I listed some cyptrocurrency for example Litecoin, Bitcoin and Euthereum  are decentralized digital currency.So the cyptrocurrency I mentioned in the example are the decentralized cyptrocurrency I was referring to as decentralized.

[Ambatman]

1. Not all cryptocurrency are decentralized

Of course yes I know not all cyptrocurrency are decentralized if you could the thread again you'll see where I listed some cyptrocurrency for example Litecoin, Bitcoin and Euthereum  are decentralized digital currency.So the cyptrocurrency I mentioned in the example are the decentralized cyptrocurrency I was referring to as decentralized.

Ethereum isn't decentralized
Ethereum doesn't have limited supply
Transaction cost of litecoin isn't overly high
Cryptocurrency doesn't equal Bitcoin
Bitcoin is an example of cryptocurrency not the other way round
The difference you gave is for Bitcoin.
When I said change I didn't mean adding Bitcoin in bracket
But change every cryptocurrency to Bitcoin and remove or rewrite point 3.

[iBaba]

Firstly it is good to establish that they are both currencies that are mentioned have closely the same functions and an end goal which is an exchange between goods and services. Knowing fully well about this, it is easy to understand the differences of both currencies lies on one advantage or the other, that they poise to improve both of them at a point in time.

1. Unlike cryptocurrencies that operates in an open-source cryptography technology which makes it extremely difficult to be controlled by cabals in the financial institution, the fiat currency is absolute issued and controlled the government and in the hands of the cabals in the financial institution. To a large extent these are the guys that move the market

2. Cryptocurrencies can also be refers to as the much needed alternative that was a monumental thought by the founder Satoshi to bring about freedom. Now, that we have the opportunity to own our funds.

Aside the abovementioned, most of the things are secondary

[bobbybkk]

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....

As an example:  If you travel to an island without internet connectivity, how do you want with crypto to pay for your food ??

So for cryptocurrencies to work you need access to a technical infrastructure for the buyer and the seller, with fiat banlnotes or coins you just need a willingness to accept the form of payment, works everywhere, everytime - 3 month power outage - no problem...

[gunhell16]

Fiat currency is a currency issued by the government while cryptocurrency is a decentralized digital currency that uses the blockchain network

First, you are incorrect in claiming that not all cryptocurrencies are decentralized, because all of the cryptocurrencies listed here, including Dcash and CNY, are centralized coins.

So fiat currency and cryptocurrency cannot be the same thing since cryptocurrency has a lot of opportunities, whereas fiat currency does not, in my opinion and perspective on the topic, which I honestly understand. Because, in terms of security, cryptocurrency is prone to technical exploits and is based on encryption, whereas fiat is safeguarded by government rules and infrastructure.

[hd49728]

Your post is very bad composed. Its content is inaccurate at many points.

Newbies Stop Teaching When You Need To Learn.

The above topic is a reminder for newbies include you, to focus on learning than trying to make threads to each others. You can come back when you have better knowledge and are able to compose better educational threads.

Some suggestions if you want to use tables on Bitcointalk

[DapanasFruit]

In my own opinion, it is good to see that in this era we are presented with a good option...one that can have a big impact on people's financial future and that is cryptocurrency. However, this is not a perfect thing most especially in the applications of it in the real world well just like the fiat currency under the control of the entity or the government behind it. As for fiat currency, you don't have to know many things before you can use it all because it is physical you bring in the paper money to any store, to the bank and you don't need to bring anything else to make a transaction. Compare that to cryptocurrency, here you must have some basic knowledge with technology behind it otherwise you run the risk of losing your coins or tokens.

[pooya87]

Almost everything you said here is wrong, some of it was pointed out and I want to focus on 6 and 8.

Cost of transfer depends on a lot of things. For example for fiat when you use the banking system it could actually be extremely high specially for high amounts. However it could be extremely low when you use bitcoin since the only cost is the on-chain fee and it is calculated based on byte size not the amount meaning you can transfer billions of dollars worth of bitcoin with only a couple of cents worth of fees.

As for destruction, cryptocurrencies can be destroyed too. Look up burning coins and there is even something called Proof of Burn. There is also people making mistakes and losing their keys which is practically the same as destroying coins.

[DanWalker]

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....

As an example:  If you travel to an island without internet connectivity, how do you want with crypto to pay for your food ??

So for cryptocurrencies to work you need access to a technical infrastructure for the buyer and the seller, with fiat banlnotes or coins you just need a willingness to accept the form of payment, works everywhere, everytime - 3 month power outage - no problem...

Each has its pros and cons, we can say that cryptocurrencies are superior to fiat currencies, but that does not mean that cryptocurrencies have no disadvantages and are 100% perfect.

In your example, it's true that crypto would be useless if we didn't have cell phones, computers, or internet, but fiat would work. But if in case, you move far and need to carry a large amount of money like millions of dollars, or the country is at war and you need to move your assets. Or you need to transfer money abroad...it's clear that cryptocurrencies are completely superior to fiat currencies and much more convenient.

Furthermore, the goal of the created cryptocurrency is not to completely replace fiat, and it is only an alternative. Both will coexist and not replace each other.

[bobbybkk]

Each has its pros and cons, we can say that cryptocurrencies are superior to fiat currencies, but that does not mean that cryptocurrencies have no disadvantages and are 100% perfect.

In your example, it's true that crypto would be useless if we didn't have cell phones, computers, or internet, but fiat would work. But if in case, you move far and need to carry a large amount of money like millions of dollars, or the country is at war and you need to move your assets. Or you need to transfer money abroad...it's clear that cryptocurrencies are completely superior to fiat currencies and much more convenient.

Furthermore, the goal of the created cryptocurrency is not to completely replace fiat, and it is only an alternative. Both will coexist and not replace each other.

Yep, the big advantage for cryptocurrencies is the freedom of doing business over the internet. I mean if you take payments via credit cards you depend on the credit card companies to accept your business model, there are long lists of business model that credit card companies don't support.

With Crypto your business model is not relevant, it is really only between the seller and buyer.

[Promocodeudo]

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

Fiat Currency	Cyptrocurrency
1.Fiat currency is accepted worldwide as a legal tender.	1.Cyptrocurrency is a decentralized digital currency that is not accepted in most countries as a legal tender.
2.Controlled and managed by central bank.	2.Operates without the involvement of third party like the central bank.
3.Example of fiat currencies are Dollar,Indian Rupee,Yen,Euro etc.	3.Example of Cyptrocurrency are Bitcoin, Ethereum, Litecoin etc.
4.Fiat currency has an unlimited supply.	4.Cyptrocurrency has a limited supply.
5.Fiat currency is a physical means of exchange for example coin,bank note etc.	5.Cyptrocurrency is a digital means of exchange for example (P2P).
6.Transaction cost of fiat currency is low.	6.Transaction cost of cyptrocurrency is high.
7.Fiat currency is stored in a person's bank account.	7.Cyptrocurrency is stored in a person's digital wallet.
8.Fiat currency can be destroyed physically for example it can be burnt.	8.Cyptrocurrency can't be destroyed physically because it is stored in a digital wallet.

Op, to me bitcoin is not a cryptocurrency as I see it, this posses some quality that most crypto does not have, starting from security, identity being personal and decentralization itself, that's why till tomorrow some people see altcoin and shitcoin as a scam, Bitcoin exist in a solid foundation but other crypto currency don't, they only digital asset that's well know and recognised by many is bitcoin, despite the volatile nature of this currency, it controls other cryptocurrency, it also has value than them, calling Bitcoin crypto is not ideal to me, I prefer you call calling it digital asset.

[0t3p0t]

6.Transaction cost of cyptrocurrency is high.

Well if you prefer to pay high fees then you can but if you have an option to use Lightning Network or Segwit supported wallet address I think you can transact faster with lower fees.

7.Cyptrocurrency is stored in a person's digital wallet.

Banks also has their online banking wallets but why do we really have to compare both when they have different functions and technology both of them rely on widespread consumer trust though.

[Fiatless]

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

Fiat doesn't take only physical form, it could also be online or take the form of CBDCs. You can decide not to use physical fiat and can still engage in financial transactions without restrictions.

6.Transaction cost of fiat currency is low.[/td][/tr][/table]

6.Transaction cost of cyptrocurrency is high

This your point is arguable because if not for the congestion of the Bitcoin mempool by Ordinals, the transaction fees is lower than fiat.

Op, to me bitcoin is not a cryptocurrency as I see it, this posses some quality that most crypto does not have, starting from security, identity being personal and decentralization itself, that's why till tomorrow some people see altcoin and shitcoin as a scam,

Bitcoin is a cryptocurrency but it is unique this why any coin beside Bitcoin are called altcoin. Many developers have tried to introduce cryptocurrencies that will compete with Bitcoin but none of them are close to its class.

[kingvirtus09]

Because the bulk of bitcoin coins are decentralized and experimental, they are all highly volatile. The government clearly controls
and backs fiat currency.

When it comes to bitcoin transactions, transparency is beneficial because anybody can see the transaction via the address and network used,
and many blockchains can be used. In contrast to fiat currency, they establish monetary policy.

[btc78]

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

[hd49728]

As for destruction, cryptocurrencies can be destroyed too. Look up burning coins and there is even something called Proof of Burn. There is also people making mistakes and losing their keys which is practically the same as destroying coins.

With Bitcoin, we only lose our bitcoins if we lost private keys.

With altcoins, with their smart contracts, we can lose our altcoins like stable coins or tokens because developers can seize it, burn it with smart contracts. I don't know it is smart contract for users or for developers, hackers and governments.

PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets.

[Fiasem20]

I've done some correction in the thread, thank you all the correction.