Cryptocurrency vs. Traditional Money: Key Differences Explained
Introduction Traditional finance developed through barter economics to digital banking, while cryptocurrency established itself as the largest disruptive financial concept during modern times. The monetary supply issued by governments functions differently from cryptocurrencies through decentralized blockchain systems. What are the actual distinguishing characteristics that separate cryptocurrency from traditional money? The main distinctions between cryptocurrency and traditional money require our attention. 1. Centralization vs. Decentralization Traditional Money is controlled by central authorities like governments and banks. They regulate supply, transactions, and interest rates. Cryptocurrency operates on a decentralized network, meaning no single entity has control. Transactions happen peer-to-peer (P2P) without intermediaries. 2. Physical vs. Digital Form Traditional Money exists in both physical (cash, coins) and digital (bank transfers, credit cards) forms. Cryptocurrency...