It's issued by an algorithm at predictable rate based on who is first to solve a cryptographic puzzle. The code to do this is open source and every node check each others in real time so that nobody is cheating. It's also incredibly hard to cheat as the only way you could do it is by inventing a computer that is faster than everyone else's.
The process is called mining and imitates the properties of gold mining, except instead of going down the mine yourself to dig for gold the computer does the hard work for you.
A fiat currency is issued by the government, controlled by the government, and has a unlimited supply as the government can create more out of thin air, thereby create inflation which makes your savings worthless over time. Crypto is the exact opposite to that, just like metals.
Isn't crypto a fiat currency like the worthless dollar? I'm really don't know, please tell me.
Worse. At least the fiat US dollar says backed by the full faith and credit of the US treasury.
Crypto isn’t backed by anyone, or anything. While it might have an appearance of backing, who enforces it?
It's issued by an algorithm at predictable rate based on who is first to solve a cryptographic puzzle. The code to do this is open source and every node check each others in real time so that nobody is cheating. It's also incredibly hard to cheat as the only way you could do it is by inventing a computer that is faster than everyone else's.
The process is called mining and imitates the properties of gold mining, except instead of going down the mine yourself to dig for gold the computer does the hard work for you.
A fiat currency is issued by the government, controlled by the government, and has a unlimited supply as the government can create more out of thin air, thereby create inflation which makes your savings worthless over time. Crypto is the exact opposite to that, just like metals.