Comparison of Cryptocurrency with Other Currency Models

In the history of mankind, there have mainly been three different currency types: commodity, fiat money, and encrypted currency.

Fiat Money
Example Bitcoin Gold USD
Ways of presenting Electronic wallet, private key Gold bars, gold bars Cash deposit
Issuing method Algorithm, proof of work (or other consensus mechanism ) Mining, refining Issuing bonds, printing money and coins
Storage method Electronic file (blockchain) Keep in the vault, own Own and deposit in financial institutions
Institutional storage costs Free Approximately 0.15% to 1% per year Deposit spread
Transaction cost Depends on transaction status Higher Lower, the range varies depending on the country
Anti-counterfeiting method Cryptography and blockchain technology Physically difficult to replicate or artificially synthesize Anti-counterfeiting design, legal regulations
Physical delivery No need to ship, you can use it with internet and private key Expensive and has safety issues Convenient than precious metals, but still has safety issues
Credit medium Understanding trust mechanism The rarity and practicality of physics, historical factors National or alliance sovereignty, gold reserves
Record keeping Blockchain automatic credit Need to be handled separately Need to be handled separately
Payment settlement Decentralized Not circulating Centralization
Source of rarity Usually has a maximum circulation Physical and technical limitations Central bank control
Identification Blockchain Physical and chemical tests Reliable source, various banknote verification methods
Freeze As long as the private key is there, it cannot be seized or frozen Will be seized Will be frozen
Privacy The principle is anonymous but open, but some currency transactions are confidential Real name but confidential when stored Real name but confidential when depositing
Maximum change /year Large, generally not less than ±1000% ±10% Depends on country conditions


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