Fiat — dollar, euro, ruble, british pound, nikkei, yen, etc. — are all means of payment and transactions based on a fluctuating value, on conventional stock exchanges, like any type of asset.
A fiat money is a currency that a State decides to use for its economy.
Crypto currency as bitcoin is a entire digital asset. And also becomes a real means of payment, everywhere in the world.
At the same time, paper money is about to disappear, and most of payments are made out of contact. Electronic money has become the most appropriate word for qualifying these transactions.
Nowadays, crypto currencies allow for exemple small entrepreneurs — but also consumers — to free themselves from the banks. It is perhaps the reason why those who fear the most altcoins are precisely banking institutions, central or not, and also the reason why they are thinking today about their regulation, so as not to lose the hand …
It may be an endless story since the creation of the first bitcoin was done precisely in the context of a desire for liberation and non-control.
By the way, it is besides the principle of the blockchain that this notion of “decentralization” where everybody validates (pool of individuals called “node”) within a network, and no longer a centralized authority holding the joysticks.
With crypto currencies, you no longer have to wonder to which sauce you will be eaten by your banker, especially when you are an entrepreneur who needs to invest to grow.
Conclusion
The main difference between fiat and crypto money is that the latter can be used and shared by everyone, anywhere in the world, without borders, need to convert, nor loss. Decentralized, fast and easy, this means of transaction — in addition, with less cost — makes the concept of cryptography a relevant alternative.
Crypto currencies owner is the only person to manage them, as if you were your own banker … and you are.
The peer-to-peer and decentralized electronic money whose implementation is based on the principles of cryptography to validate transactions and the generation of the currency itself. Unlike traditional currencies that are printed, crypto-currencies are created by solving mathematical problems based on cryptography.
In a close future, crypto currencies will replace the fiducial money
Remember Draper’s prediction:
Well, maybe not under five years — first of all because time is passing really quickly AND because some people need time facing such a radical change — but certainly under ten years…
Nowadays, more and more central banks around the world understand that the era is changing, and begin to adapt themselves. it is a big change to make for governments to accept the idea that with crypto currencies there is no printing money. And as we saw above, authorities are not so ready to let billions people to be their own regulator.
Anyway, for the WorldCup2018 in Russia, visitors are already asking for payments in Bitcoin. A russian blog has published a non-exhaustive list of businesses (hotel, restaurants, shops, services …) where bitcoins and other crypto are accepted for transactions.
In this list, LavkaLavka is mentionned. As, you know, our farmer cooperative is ready not only for BTC, but for its own token BIO, thanks to its loyalty system BioCoin!
No doubt that crypto and blockchain are the new ways to manage international trade and any other parameters of our lifes and environment. And no need to be scared about it, because it is a good news for once.
