Reasons Why Crypto and Fiat Currencies Belong to Different Worlds

Since the first day of its appearance, we are in a period where the advantages of crypto coins over fiat money have come to the fore especially with the effects of the epidemic. The increase in the number of investors and users has proved that crypto coins are an alternative to fiat money. We have often seen that countries want to accept these developments and participate in the transformation. Even though the advantages of crypto coins are many, we can say that there is an unfair competition against fiat money. Over time, countries issuing their own digital currencies or accepting cryptocurrencies legally will equalize the situation. Cryptocurrencies 3. It is quite safe compared to fiat coins exchanged through individuals. Storing and valuing our assets without the need for any organization can be seen as an effective advantage. The unlimited ability to print money in the world of fiat money runs counter to the functioning of bitcoin and many cryptocurrencies. Unlimited printing also negatively affects the value of fiat money, which is evidenced by the fact that money is printed free of charge in every crisis.

Fiat Coins Fiat currencies are valuable because they are mandated by the state to use fiat currencies as a medium of exchange, store of value, and unit of  account. The clearest evidence of this practice is that the state requires taxes to be paid in the national currency. Although national currencies are compulsory, the use of crypto coins causes countries to provide innovations. Due to the mismanagement of the money supply by some governments, it has been inevitable that currencies will lose value compared to other global currencies. This is the case with many fiat currencies. When such negativities are taken into consideration, the confidence that centrality can always be achieved in a positive way decreases.

Crypto Coins Fiat money systems have a specific policy, while cryptocurrencies have a decentralized autonomous system. From the first day, it continues to operate in a planned, predictable and without the need for trust. For example, the fact that bitcoin is limited to 21 million and the block time is a fixed 10 minutes supports its supply and controlled development. Its biggest advantage compared to fiat money is that it is produced based on proof of work rather than being produced gratuitously. In addition, the halving of the money that occurs every 210,000 or 4 years and is involved in the circulation of miners in the production of new blocks plays an important role in preserving its value.

When all the qualities are taken into consideration , crypto coins can be superior to fiat money with their resistance to centralization, counterfeiting and inflation.

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