Fiat Currency VS Cryptocurruncy
Fiat Currency
In early time there was no any concept of currency. Peoples was trading by exchanging their goods and services. If subject A was needy for goat and subject B was needy for sheep then they will trade by exchanging goat and sheep. That is called barter system. After a long time world was being advance slowly slowly and they invented coins of metal (gold and silver). But these coins was not so easy to exchange.
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After Along time of coins finally banking system was being existence in the World. In early time of banks it was working like a banch of two peoples. Bankers were issuing certificate of our reserves. For example if I have gold and I feel it is not safe in my home I will go to bank and will deposit my gold, they will issue me certificate of my reserve.
After that slowly slowly fiat currencies were being exist in the world. Now fiat currencies are in the shape of paper currency and digital values which we see in our bank wallets. Here are many challenges in the world, when we are dealing with fiat currencies. Today there are 200+ countries in the world. Every country have their own currency and central bank. When we trade with them we exchange the money though banks which is not easy and costly process.
Cryptocurruncy
Internet is the beauty of technology. Now we can communicate with the world in high speed. Before understanding the cryptocurruncy, let me discuss e-mail. Before email we was rellying on postal system. Which was very costly and slowly. Postal system was like the bank and email system is like the cryptocurruncy.
In the end of 19s, world was needy of digital currency. But the problem was technology or programming was not so good at that time. It was not so easy to create a banking system on internet. But after the 2008's world financial crisis. It was more needy to have a decentralize digital currency. And at that time satoahi nakamoto invented blockchain and Bitcoin. It's a decentralize digital currency. Zero chances of data manipulation.
Image source https://blockgeeks.com
Bitcoin is an amazing innovation in the world. We have never seen before. By the end of 2016 it crossed the price of 20000$ per Bitcoin. Many financial experts are still trying to understand blockchain and Bitcoin. I want to share something very interesting about Bitcoin.
It is free to transact from A to B.
It is very speedy then banks.
It has limited supply.
No chance of manipulation.
If A is sending 2 Bitcoin to C and B then one of them will be valid by system and second one will be rejected by the system.
Now fiat and cryptocurruncy is very clear to you. If we will have the currency which is backed by the proof of work. After consuming high amount of electricity and cpu. Then why we neeed to go for fiat money and reserving process. Banks are totally destroying our economy. What is about those who have no money? What banks have done for them? Banks are greedy and that's why our economy is not depending on banks. If you will send any amount of money from country A to D. How much time bank will take? But Bitcoin is almost few seconds.
nice fact getting valuable information from your post
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