Advantages and Disadvantages of Fiat and Cryptocurrency
Since we’ve already understood what fiat currency and cryprocurrencies are in our previous blog . Let’s look at what advantages and disadvantages that each of them entails. Advantages of Fiat Money Fiat Money has remained legal tender in most countries in part because they are highly stable and controlled. Unlike other forms of money, such as cryptocurrencies and commodity-based currencies, fiat currencies are relatively stable. The stability allows regulators and governments to navigate the economy against recession and inflation. Stability also allows fiat money to act as a means of storing value and facilitating exchange. It can also be used to provide a numerical account. Greater control also allows central banks to manage various economic variables such as liquidity, interest rates and credit supply key to ensuring a robust, stable economy. Disadvantages of Fiat Money Though Fiat Money is considered a stable currency, yet that is not always the case. Econo...