Both fiat money and cryptocurrency deliver this utility, but are different in a number of key ways . Fiat money is legal tender whose value is tied to a government-issued currency, like the U.S. dollar, while cryptocurrency is a digital asset that derives its value from its native blockchain.
Read moreDoes Phemex require KYC?
To fully enjoy all Phemex features without limitation, we highly recommend that you complete KYC .
Read moreWhich header option must you click first to find our OTC trading Page Phemex?
Before you can use our OTC service, you must first enable your OTC account. Click on the Buy Crypto with Bank Transfer under the Buy Crypto header option. On the OTC Trading page, click the slider button next to “OTC Account Status” on the right side of the page.
Read moreWhat is the difference between commodity backed money and fiat money?
Commodity money has some intrinsic value due to the content of precious metal it is made up of or backed by, but debasement or increases in precious metal supply can cause inflation. Fiat money is backed only by the faith of the government and its ability to levy taxes.
Read moreWhat currency is backed by a commodity?
Fiat money is both physical money and legal tender and is backed by a nation’s government. Representative money is backed by a physical commodity such as precious metals or instruments like checks and credit cards.
Read moreIs Cryptocurrency a fiat or commodity money?
Cryptocurrency is another fiat money alternative that’s on the rise. Cryptocurrencies such as Bitcoin could be used in the future as the main form of currency, but for now, it’s still not widely accepted.
Read moreWhat are fiat currencies backed by?
In contrast to commodity-based money like gold coins or paper bills redeemable for precious metals, fiat money is backed entirely by the full faith and trust in the government that issued it . One reason this has merit is because governments demand that you pay taxes in the fiat money it issues.
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