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What Is The Difference Between Cryptocurrency & Regular Currency?

Currency, or money, has been used as a trading medium for centuries, if not millennia. It has been used as a form of trade for goods in many cultures and many discoveries have been made showing that money had been used as early as 5000 BC. Around 700 BC in Western Asia, coins came into use and production. Money ahs certainly advanced over time, with metal, paper, plastic and digital versions now in full commercial use across the globe.

Fiat or Regular currency: Fiat money is considered to be a legal tender that has been issued by the government.

Fiat currency is not reserved by physical commodities but by people’s faith and credit. The fiat currency can be in the physical forms i.e. notes or in electronic form such as bank credit or debit cards. The government has absolute control over the supply of fiat currency and from time-to-time government adopts several regulatory measures such as inflation, deflation etc in order to run the economy in a smooth manner.


It is not considered to be a legal tender and it is completely decentralized and used in the virtual and digitalized world. It is not owned or controlled by banking or government institutions.

There are algorithms or protocols that work at the back-end to control its supply.

Difference Between Cryptocurrency & Regular Currency

Cryptocurrency can be taken as real-time money because it can be transferred from one account to another account in real-time. Fiat currency is not real-time money except in a physical form.
Country borders:
Fiat currency has its limited scope and reach and usually people need to exchange their currencies if they use their national currency in any other country. On another side, cryptocurrency is unlimited and is not defined by nation’s boundaries.
Cryptocoins are mined and its value and supply are decided on the basis of the mining process. Fiat currency is regulated and controlled by the government; therefore its supply is adjusted according to the need of the economy.
Mode of Exchange:
Cryptocurrency can be exchanged only in the digital form and on the digital platforms while regular currency is in the paper form or electronic form. Also, it can be exchanged in physical form or through wallets.
Every country regulates its regular (Fiat) currency in its own way and usually goods are exchanged for fiat currency. It has been a trend since ages it was discovered. The case is different with cryptocurrency as the government has no control over supply and demand of it.
Individuals are required to pay taxes for various purchases in the form of regular currency. In case of cryptocurrencies, users are not yet required to pay taxes while making transactions on crypto wallets, however some countries are working very hard to make this happen.
There can be possibilities when cash money is stolen. This is usually a scenario with regular currency as thieves can steal the money in both physical form as well as attacking accounts online. However, to steal cryptocurrency, thieves must possess great amounts of knowledge of technical algorithms which is a limited case. Cryptocurrency is therefore considered as safer currency.

Although there are differences between the two yet both are regarded as similar because they are simply medium of exchanges and governed by supply or demand in the market.

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