@Liam.Davis · Posted 14 Jul. 2021
@Alfred.Evans · Posted 27 Jul. 2021
The word Fiat money is derived from a Latin word that means a determination by authority. Fiat currency is the traditional form of currency. Fiat currency in the form of currency that is being enforced by the govt. fiat currency is free of any representative. It is the old form of currency that comes in notes as a coin. Fiat money has a declared legal tender. The currency is backed by the government. This means the coins and paper currency of different denominations are considered as Fiat money, Indian rupee US dollars Euro and the British pound are considered as Fiat money. The value is being determined by the go vet. The value of fiat currencies depends upon the current economical situation and the stability of the government.
Virtual currency is an unregulated form of digital currency, it is a substitute for legal currency but it does not have any legal tender. These currencies are very easy to exchange for fiat currencies. Digitalization has put forward the idea of virtual currency which is not only safe also helps to track the amount of expenditure and income. Introduction virtual currency has released pressure over cash flow in the market. The value of the virtual currency cannot be determined and it is posses the same value as fiat currency. Basically, virtual currency is a substitute for fiat money.
There is a lack of physical appearance in the case of cryptocurrencies as they appear online in a digital form. On the other hand, fiat currency can sustain in form of notes and coins to feature physically. In comparison with fiat and virtual money, it is easy to carry virtual money as it is safer than carrying chunks of huge amounts. Virtual currencies exist in electronic form as they are not minted rated created with the help of technology. Virtual forms of currencies can be exchanged digitally only. Whereas fiat money exists in both physical and digital forms. The electronic payment process has allowed users to transfer fiat currency into digital currency
Hence we can say that fiat currency actually holds more value compared to digital or virtual currency.
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@Business.Upside · Posted 15 Jul. 2021
Fiat Currency- A currency that is not backed by any physical commodity such as Gold or Silver but the Government is the guarantor of it. It gives Central Banks greater leverage over the economy because they control how much money is being printed. Most modern currencies such as U.S. dollars or Indian Rupees is an example of this type of currency.
Virtual Currency- It is not controlled by a centralized banking authority but is held under the blockchain network of control. It is different than digital currency in many aspects and experiences drastic price changes because it is unregulated and the only driving factor behind this currency is consumer sentiment.