To begin with, we must understand what traditional money is all about. Fiat currency is issued and controlled by the state. These are dollars, euros, and so on. It works at the expense of the authority of the state, which issues it. If the authority of the state falls, the currency falls in value. Fiat money has a paper counterpart, which you have definitely held in your hands. The state can print any amount of money and it depreciates in value. Cryptocurrency is a type of digital currency. It is not controlled by the government or banks. The revolutionary thing about bitcoin is that you don’t need a bank to transfer money to someone. Cryptocurrency has no physical equivalent: bills or precious metal coins. Bitcoin is anonymous – all transactions are available to anyone on the Internet. But we only know the wallet numbers, no first names, last names or passport information. Nowadays bitcoin is actively penetrating in different spheres, for example I’ve seen gaming platforms, that offer free BTC faucet for performing simple and not complicated actions. This is probably the most basic difference from basic money.
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