It cannot be denied that crypto currency trading is already popular, not just in the United States, but all over the world. The popularity of crypto currencies can be proven by the many different kinds of digital currencies and the increasing number of bitcoins and altcoins in circulation.
Similarities of Crypto Currencies and US Dollars
Both the crypto currencies and the US Dollar have so much in common. This is why there is a strong need for articles that compare the two so that people, especially those who are new in crypto currency trading, will be guided accordingly. Below are the similarities of crypto currencies and US Dollars:
- Both are recognized in the United States.
- Both are undeniably valuable – their values depend on a number of market variables.
- Both can be used to purchase goods.
- Both can be used for real trading.
- Both crypto currencies (specifically bitcoin) and US Dollars are now very popular to currency traders.
Differences of Crypto Currencies and US Dollars
While both the crypto currencies and US Dollars have a lot of similarities, it is undebatable that both also have so many distinctions from one another. Below are there most notable differences:
When we talk about liquidity, US Dollar is far superior than crypto currencies. The former is the most reserve currency in the whole world. In fact, other foreign currencies depend their value in US Dollar. On the other hand, crypto currencies are only a few years old – making it less used, less liquid, and less respected.
2. Government’s Control
It is the government that control the value of US Dollar. They can print new US Dollar bills if needed and this is where inflation arises. On the other hand, no institution has control over the value of crypto currencies.
Their value simply depends on market condition, especially the supply and demand ratio. The number of crypto coins that can be generated is also limited to a certain number only. It is impossible to generate more digital coins than the set digital coin cap.
3. International Currency
While US Dollar can be traded for any foreign currency, it is still considered as the US’ currency. It will never be the currency used in any other country. On the other hand, crypto currencies are considered as an international currency.