Cryptocurrency & Fiat
What exactly is cryptocurrency? What is fiat money? How do they differ?
Cryptic Definitions
Beginner Definitions
What is Cryptocurrency?
- the act of validating cryptocurrency transactions on a blockchain network
- the source for creation of new coins
- provide the verification and prevention of double-spending on a distributed network.
What is Cryptocurrency?
- they move your crypto when you send it
- they make new coins
- they make sure no funny business happens with circulation issues
What is fiat money?
- designed by an issuing government to be legal tender by decree
- currency not backed by a physical commodity
What is fiat money?
- government based money
- it is not backed by silver or gold
By the Numbers
Cryptocurrency
*numbers are subject to change at anytime.
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Frequently Asked Questions
The US Dollar is fiat money because it is backed by the US government.
Yes and No. Bitcoin itself is a cryptocurrency only in the form of the word. Thankfully unlike all the other cryptocurrencies, Bitcoin is not usually mixed-up with the general terminology of cryptocurrency. Most suave investors do not correlate Bitcoin and cryptocurrency in the same sentence. Bitcoin has no central controller, no marketing team, and no one has any special privilege above anyone else. It’s immutable!
I highly recommend storing your Bitcoin and cryptocurrency in a hardware wallet. These devices store and generate your private keys without any connection to the internet. Deep cold storage is BEST!! For more information on these types of storage devices click on the link below:
Absoluetly not. All governments have designed fiat currency with inflation in mind. (Remember, Bitcoin has NO inflation).