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Conclusion: Two Systems, One Shared Foundation – Trust

Modified on Thu, 27 Mar at 8:50 AM

Whether it’s the euro or Bitcoin, both forms of money rely on belief and acceptance. Fiat money depends on trust in central banks and governments. Cryptocurrencies rely on trust in technological infrastructure, math-based protocols, and global communities.


The claim that cryptocurrencies are “worthless because they’re not backed by anything” is misleading. It overlooks the reality that our everyday money is also not backed by tangible assets. Both are abstractions built on confidence in systems – just different systems.


Fiat Money vs. Cryptocurrency – A Quick Comparison

Feature

Fiat Currency (e.g., Euro, Dollar)

Cryptocurrency (e.g., Bitcoin)

Issuer

Government / Central Bank

Decentralized network

Backing

Trust in state institutions

Trust in technology and code

Physical asset backing

None (no gold standard)

None

Supply control

Centralized monetary policy

Programmed supply (e.g., capped)

Use cases

Everyday payments, taxes, savings

Online transactions, DeFi, investments

Stability

Generally stable, but inflation-prone

More volatile, influenced by market cycles

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