Introduction |
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Hello Steemians, I welcome you all with my respect and pleasure as the founders and esteemed moderators of this Steem Fashion&Style community. I will immediately share my contribution to this interesting contest. I applaud @sahmie sir for this great contest, I am immediately presenting my topic today. Today's topic “Cryptocurrencies vs Fiat Currencies”
Cryptocurrencies vs Fiat Currencies |
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Cryptocurrencies |
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Cryptocurrency is a private digital currency. Cryptocurrency is a new way of transaction. One may argue that cryptocurrencies are a subset of digital money. Crypto refers to a secret, while Currency is money that is exchanged for different kinds of goods. With cryptocurrency, transactions are entirely private and untraceable to other parties. It is an encrypted kind of money . It's also critical that the people running the show be not the government.
The use of cryptocurrency is growing in the modern day. Let's review the benefits of cryptocurrencies before utilizing them:
The kind of notes that we use like 2000 rupees note, 500 rupees note, there is a possibility of getting lost note or torn note but cryptocurrency is a digital .There is no chance of fraud or tampering with the currency in this instance.
If you suddenly want to send money to someone far away quickly, cryptocurrency is one of the mediums.Digital currency moves quickly from one location to another since cryptocurrencies are digital currency.
Since there is no central institution for cryptocurrencies, there are no specific terms or guidelines for cryptocurrencies.
In case of money transfer some amount is deducted but in case of cryptocurrency no charge is deducted.
Cryptocurrency can be exchanged for cash with an ATM card.
States or governments do not regulate cryptocurrencies.
Cryptocurrency is a very good option for investment as its value sometimes goes up a lot
Cryptocurrency does not require a bank
How does fiat money work? |
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Fiat money has value because the government maintains it and also because two parties to a transaction have agreed to it. Previously, governments around the world minted currency from physical commodities such as gold or silver. Note that fiat money cannot be converted. Being unrelated to any physical things, fiat money is susceptible to depreciation, especially during periods of extreme inflation.A country's currency will become worthless if its citizens start to doubt it. However, note that this is not the same with currencies backed by physical commodities like gold Gold as a commodity holds great value.
Benefits of fiat currency One of the most crucial aspects of fiat money is stability.. Commodity-based currencies were volatile due to the recession. Notes help central governments keep printing and supplying as much as they need. It gives them the right additional supply, interest rate and liquidity.
I invite my Friend.
@joshdavid
@ciru2014
@humaidi
◦•●◉✿ Thank's Everyone ✿◉●•◦
◦•●◉✿ Thank's Everyone ✿◉●•◦
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