Ethereum / Breaking News / Bitcoin
FIAT currency is the term used to describe centralised media for value exchange and generally refers to sovereign currencies such as the British Pound, the Euro and the United States Dollar. Historically though, the use of gold and salt would also have been considered as a FIAT currency when it was under the control of a central body. The difference that cryptocurrency has here and one of its many advantages is that crypto is not controlled by a central body – what does this actually mean though?
The problem with FIAT currency is that when we spend it, it needs to be approved by a central body, a middleman who processes transactions to confirm that the transaction has been carried out in a fair manner and the money has been moved from one place, to another. It’s slightly different when we pay cash to our friends (for example) but even so, before we had the cash, it’s been through a bank and the legitimacy of that money has been confirmed prior to us owning it. With FIAT, there’s no way out of this chain, and now the population is getting sick of it.
By having a middleman and by having other factions handle our money and transactions, our money is at risk of collapse under them – how many times have we seen major banking collapses totally screw our economies? Too many to count.
Cryptocurrencies like Bitcoin and Ethereum provide solutions to this problem by existing within a decentralised network, one that does not require human intervention and one that does not allow money to pass though hands. Another bonus is that when using crypto,