what is the difference between cryptocurrency and traditional currency?

[Sim_card]

Traditional currencies are fiat money, if you don't understand what fiat is, then a good example is our local currencies like USD, Pounds and Euro etc. crypto is entirely different from these, its only exist in a digital form, we can make exchange them with each other and they can all be used as an acceptable means of making payments.

I think one of the major differences between the both of them is volatility. Cryptocurrencies are usually way more volatile than traditional fiat currencies and that's because price is controlled by liquidity inflow and out flow.
Fiat basically are regulated fully by the government and depend totally on government decisions and the economic state of the country or region. I think one major problem with fiat is inflation that's why they are not volatile enough to be seen as investments.

Fiat cannot be volatile because it wasn't created so. But you can use fiat as an investment or asset but not a store of value because an asset can depreciate or appreciate overtime.

[Mia Chloe]

Fiat cannot be volatile because it wasn't created so. But you can use fiat as an investment or asset but not a store of value because an asset can depreciate or appreciate overtime.

Well in my opinion your statement is meant to be relative. This is basically because there are a couple of fiat currencies out there that are unstable and this is as a result of the nature of the economy of that particular country using that currency. The problem with so fiat is most inflation infact it's not just some it's basically a general problem.

The difference between most of them is that based on economic stability some fiat currencies get hit harder by inflation when relatively compared to others.

[Sim_card]

Fiat cannot be volatile because it wasn't created so. But you can use fiat as an investment or asset but not a store of value because an asset can depreciate or appreciate overtime.

Well in my opinion your statement is meant to be relative. This is basically because there are a couple of fiat currencies out there that are unstable and this is as a result of the nature of the economy of that particular country using that currency. The problem with so fiat is most inflation infact it's not just some it's basically a general problem.

The difference between most of them is that based on economic stability some fiat currencies get hit harder by inflation when relatively compared to others.

Exactly, take for example our Naira is highly affected by inflation compared to the US dollar. Perhaps, this liesin the hands of the government to stop importing almost everything that we are using in this country but rather create an atmosphere to support production of these products in our country. That will limit the high level of inflation because it's locally made and will also provide jobs for people.

[Agbe]

Fiat cannot be volatile because it wasn't created so. But you can use fiat as an investment or asset but not a store of value because an asset can depreciate or appreciate overtime.

Well in my opinion your statement is meant to be relative. This is basically because there are a couple of fiat currencies out there that are unstable and this is as a result of the nature of the economy of that particular country using that currency. The problem with so fiat is most inflation infact it's not just some it's basically a general problem.

The difference between most of them is that based on economic stability some fiat currencies get hit harder by inflation when relatively compared to others.

Exactly, take for example our Naira is highly affected by inflation compared to the US dollar. Perhaps, this liesin the hands of the government to stop importing almost everything that we are using in this country but rather create an atmosphere to support production of these products in our country. That will limit the high level of inflation because it's locally made and will also provide jobs for people.

one thing that you need to know too is that even though am not supporting our government for not creating the right environment for our local manufacturing industry where we can produce things on our own and reduce the high inflation that we are having due to importation, there is also influence from external factors to our government so to some extent our government is in a fixed Conner because our colonial masters still has a strong grip on our government in terms of policy formulation and implementation which is key to the development of any country

[Joshikinz]

Traditional currency includes naira,US dollars,euro and Japanese yen. Central Banks and government are the institutions that issues and regulate fait currencies.

The difference between traditional currency and cryptocurrency, it is base on their operational and accessibility models.

Traditional currency operates in centralized institutions like Banks which are governs by regulations.they are constrained geographically an operational wise.
While cryptocurrency is decentralize system,that operates without banking infrastructure, unlike traditional currency.
Let us discuss and know more about, traditional currency vs cryptocurrency

Traditional currency is much more stable than cryptocurrency this is because traditional currency operates in a centralized system as opposed to cryptocurrency which is highly decentralized. Cryptocurrency is also has no intrinsic value, the value it has is given by the users of that token, traditional currency however has intrinsical value which  is backed up by the government as a legal tender.