Currently, there is a growing trend of investing in cryptocurrencies. But there may be doubts as to how cryptocurrencies are similar or different from current deposits, can they be transferred, paid for goods and services through the application or not?

Currency or paper money (Fiat Money)

is money that is used today. It can be tangible and used by government mandates. Therefore, the value of money will depend on responsible fiscal policies and laws. Its benefit is that it allows central banks to better control the economy.

Advantage

Currency or paper money is legal in all countries around the world. because the government can control the production and is stable This allows regulators and governments to cope with recession and inflation. This allows this type of money to act as a tool for storing value and facilitating exchange

Drawback

Although currency or paper money is considered a stable currency. But not always because during the recession. Some shortcomings may be seen, for example, the central banks of different countries have tighter policy controls. But it can't stop a recession or inflation.

For cryptocurrency, it is an electronic unit of information. created to serve as a medium for exchanging goods, services, or exchange with other digital assets; can be used as a medium for exchanging goods and services if users agree with each other.

While cryptocurrencies are still not considered “legal tenders” by most central banks around the world, there are some popular cryptocurrencies. Among those who believe that the future will play an important role in the financial world future investment

Advantage

Cryptocurrency turnover rate happen quickly It can be traded instantly, so speed is a standout feature. At the same time, operating fees are lower than the current financial system. and high privacy as users do not need to reveal their identity to complete transactions.

Drawback

Cryptocurrencies are quite elusive and highly volatile. That's why it's important that regulators remain concerned and need to study carefully before liberalization.