There’s a lot of news out there about fiat money and cryptocurrencies but what does any of that even mean? Sometimes I feel like it’s just a bunch of buzzwords so that’s why I created this brief guide on what the difference between the two is.
Those dollars, euros, pesos, and other forms of currency that you have in your bank account or pull out of your wallet are types of fiat currency. They’re money that the government has deemed as legal tender. In the United States money used to be backed by gold. Those days are no more – at this time, fiat currency does not have to be backed by a physical commodity. It’s value is created by supply and demand and faith in the government or the economy.
Cryptocurrency on the other hand is a digital form of currency that uses special techniques to verify the exchange of funds. Cryptocurrencies operate independently of central banks and tend to be built on a platform called the Blockchain, which is a digital ledger (or history of transactions) verifying where funds have been transferred for different goods and services.
Here are a few of the key highlights between Fiat Money and Cryptocurrencies.
Fiat money has been around for many years and cryptocurrency is a relatively new development that has emerged within the past twenty. While both have their pros and cons, it’s important to remember that the world isn’t a zero sum game where you have to be with on or the other. There are ways to balance the world you live in with the world that is emerging.
That’s one of the main reasons why Jarbux was created, to provide people with a way to save their fiat money while simultaneously creating opportunities to learn about blockchain based technology. The Jarbux platform brings a special balance to those desiring to maximize their financial opportunities whether it be in fiat money or cryptocurrency.
With Jarbux, the more you save the higher chances you have at winning a prizes you love, it’s that simple.
Jarbux: Save. Win. Give
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