Hi friends, I've heard a lot about cryptocurrencies but I don't understand the difference between them and regular fiat money. Can someone please explain?

Hi. Sure, the difference between cryptocurrencies and fiat money is quite important. Fiat money is traditional money issued by the government and backed by a country's economy, such as dollars, euros or yen. This money is backed by law and usually exists in physical form - banknotes and coins. Read about it at https://www.techguide.com.au/news/crypt ... iat-money/. And here's the key difference: cryptocurrencies are decentralized. This means they are not controlled by central banks and can be used in international transactions without the need for currency exchange. Fiat money, on the other hand, is influenced by the economic policies of their countries and can be subject to inflation or devaluation.

That's right, fiat money has value because it is backed by the government. In contrast, cryptocurrencies are digital or virtual money that use blockchain technology to enable secure transactions. They have no physical form and are not subordinate to any government or bank.

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