The rat race that companies survived even a couple of years ago still prevails but the only difference is that it has become even fiercer. Business entities are striving hard to adapt to newer technologies and so called “business landscapes” in an effort to cope up with the changing times.

You will encounter “different forms of money” these days that have kept companies on their toes. In this regard, let us talk about the much sought after and popular cryptocurrency.

The Cryptocurrency emerged way back in the year 2009, thereby replacing the “Fiat currency”. Within a very short time span it got firmly anchored to the roots taking the market value to a whopping $2billion, the results of which were recorded in the year 2013. In this write-up, a lot of stress has been laid on the two main benefits of Cryptocurrency and how it differs from Fiat money?

What is Fiat money?

Regardless of whether it is Fiat money or Cryptocurrency, they are used as “medium of exchange” and they do not have their own value like silver or gold. The only difference is the government backs the Fiat money as legal tender and is responsible for the supply of this money.

What is Cryptocurrency?

On the other hand, Cryptocurrency, is not a currency that is backed by the government rather it is a “decentralized currency”, digital in nature and functions on the so called Blockchain technology.

Differences between Fiat money and Cryptocurrency currency

So, how is Cryptocurrency currency revolutionizing the business landscapes across the globe wherever it is being used and how does it differ from Fiat money? Let us find out more in the following paragraphs-

• Inflation

How do the two currencies behave during inflation? Fiat money is not insulated from inflation. And for similar reasons, unlike yesteryears, when purchasing power of million dollars was more, these days, the same has decreased considerably. Also, it is at the government’s discretion if it wants to print more money thereby influencing the supply of the currency. On the other hand, Cryptocurrency, being a decentralized currency does not allow banks or governments to control the supply. This currency is rather based on so called “algorithm”, which prevents the currency from being inflated.

One of the greatest advantages is that it will not decrease the value of the currency over time. In fact, on the contrary, you can allow the value of this currency to appreciate over a period of time. And this is undoubtedly a very big advantage for the business houses and entities operating across the country.

So, it can be safely said that if you banked upon payday loans online or any other form of financial aid to meet unexpected financial obligations earlier, now you can plan out your cryptocurrency investments accurately, so that you can be assured of great returns in future.

• User friendly and easy to use

With the world moving faster with every passing day, every individual wants to get things faster and quicker and with the least hassle involved. The Fiat currency system will require you to keep tab on paper currency and with the banks that you are dealing with for any transaction that you intend to perform.

Cryptocurrency being digital in nature saves you from losing your money as you would have, had you lost your wallet that contained physical currency. You can keep your digital wallet protected by strong passwords. In other words, the transactions that you perform with this currency are way more secured and most importantly backed up on several devices.

There is a common saying that every coin has two sides. As such, regardless of whether you are using Fiat money or Cryptocurrency, each has its own benefits and drawbacks. However, whether a particular currency is serving as a boon or bane can only be decided by the individual business entities keeping in mind their business vision, mission, goals, and objectives.