A currency is anything that is accepted for payment of goods and services

​

​When we use objects for payments or trade, it generally considered to be bartering which forms the earliest examples of currency systems

Traditional Currencies

=

FIAT Curriences

Fiat money is a government-issued currency not backed by a physical commodity, such as gold or silver, but rather by the government that issued it.

​

The value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government, rather than the worth of a commodity backing it.

​

Most modern paper currencies are fiat currencies, including the Australian dollar, the euro, and other major global currencies.

​

Fiat Currency

​

Key Points

​

• Government-issued

• Not back by a physical reserve

• Controlled by a country's central bank

• ​Printing too much money can cause hyperinflation

​

Fiat Currency

​

• ​Hyperinflation refers to rapid and unrestrained price increases in an economy, typically at rates exceeding 50% each month over time.

• In times of war and economic turmoil in the underlying production economy, hyperinflation can occur in conjunction with a central bank printing excessive money.

• ​Hyperinflation can cause a surge in prices for essential goods—such as food and fuel—as they become scarce.

• While hyperinflations are typically rare, they can spiral out of control once they begin.

Hyperinflation

​

Pros​

Convenient to Use - It's easy to carry and exchange.

​

​

​

​

Pros & Cons

of

Traditional Currencies​

​

Pros​

Convenient to Use - It's easy to carry and exchange.

​

​Cheap to Produce - It costs around 25 cents to produce a polymer banknote. This makes it profitable for the government.

​

​

​

​

Pros & Cons

of

Traditional Currencies​

​

Pros​

Convenient to Use - It's easy to carry and exchange.

​

​Cheap to Produce - It costs around 25 cents to produce a polymer banknote. This makes it profitable for the government.

​

​Widely accepted - Domestically, cash is accepted for all transactions and can be exchanged readily for other currencies.

​

​

​

Pros & Cons

of

Traditional Currencies​

​

Pros​

Convenient to Use - It's easy to carry and exchange.

​

​Cheap to Produce - It costs around 25 cents to produce a polymer banknote. This makes it profitable for the government.

​

​Widely accepted - Domestically, cash is accepted for all transactions and can be exchanged readily for other currencies.

​

Economically Stability - Countries have more flexibility with reacting to changing economic conditions. ​ ​

​

​

​

​

Pros & Cons

of

Traditional Currencies​

​

Pros​

Convenient to Use - It's easy to carry and exchange.

​

​Cheap to Produce - It costs around 25 cents to produce a polymer banknote. This makes it profitable for the government.

​

​Widely accepted - Domestically, cash is accepted for all transactions and can be exchanged readily for other currencies.

​

Economically Stability - Countries have more flexibility with reacting to changing economic conditions. ​ ​

​

Economic Growth - Countries can increase the printing of fiat currencies to stimulate growth​

​

​

​

Pros & Cons

of

Traditional Currencies​

​

Cons

Risk of Inflation - Printing too much money can decrease its value

​

​

​

​

​

Pros & Cons

of

Traditional Currencies​

​

Cons

Risk of Inflation - Printing too much money can decrease its value

​

​Sceptical to Public Confidence - If people lose confidence in the monetary system, it can affect its value domestically and internationally.

​

​Fees & Limited -[Financial institutes place limited withdrawals and high fees on foreign exchanges.

​

​

​

Pros & Cons

of

Traditional Currencies​

​

Cons

Risk of Inflation - Printing too much money can decrease its value

​

​Sceptical to Public Confidence - If people lose confidence in the monetary system, it can affect its value domestically and internationally.

​

​

​

Pros & Cons

of

Traditional Currencies​

​

Cons

Risk of Inflation - Printing too much money can decrease its value

​

​Sceptical to Public Confidence - If people lose confidence in the monetary system, it can affect its value domestically and internationally.

​

Limited Privacy - Fiat money is easy to track.

​

​

​

​

​

Pros & Cons

of

Traditional Currencies​

​

Cons

Risk of Inflation - Printing too much money can decrease its value

​

​Sceptical to Public Confidence - If people lose confidence in the monetary system, it can affect its value domestically and internationally.

​

Limited Privacy - Fiat money is easy to track.

​

​Fragility - Notes and coins can be easily damaged and need to be replaced.

​

​

​

Pros & Cons

of

Traditional Currencies​

​

Cons

Risk of Inflation - Printing too much money can decrease its value

​

​Sceptical to Public Confidence - If people lose confidence in the monetary system, it can affect its value domestically and internationally.

​

Limited Privacy - Fiat money is easy to track.

​

​Fragility - Notes and coins can be easily damaged and need to be replaced.

​

​

​

Pros & Cons

of

Traditional Currencies​

​

​

​

Cryptocurrencies

are secured using Cryptography​

Pros

​Protected from Inflation - Only a limited number of cryptocurrencies are released, increasing demand and increasing value.

​

​

Pros & Cons

of

Cryptocurrencies

​

​

Pros

​Protected from Inflation - Only a limited number of cryptocurrencies are released, increasing demand and value.

​

​Transaction Speed - Transfers can be completed in minutes.

​

​

​

Pros & Cons

of

Cryptocurrencies

​

​

Pros

​Protected from Inflation - Only a limited number of cryptocurrencies are released, increasing demand and value.

​

​Transaction Speed - Transfers can be completed in minutes.

​

Transaction Cost - It is generally much cheaper to transfer cryptocurrencies than fiat currencies.​

​

​

​

Pros & Cons

of

Cryptocurrencies

​

​

Pros

​Protected from Inflation - Only a limited number of cryptocurrencies are released, increasing demand and value.

​

​Transaction Speed - Transfers can be completed in minutes.

​

Transaction Cost - It is generally much cheaper to transfer cryptocurrencies than fiat currencies.​

​

​Security - Cryptocurrencies are assigned to a single private key.

​

​

Pros & Cons

of

Cryptocurrencies

​

​

Pros

​Protected from Inflation - Only a limited number of cryptocurrencies are released, increasing demand and value.

​

​Transaction Speed - Transfers can be completed in minutes.

​

Transaction Cost - It is generally much cheaper to transfer cryptocurrencies than fiat currencies.​

​

​Security - Cryptocurrencies are assigned to a single private key.

​

​

Pros & Cons

of

Cryptocurrencies

​

​

Pros

​Protected from Inflation - Only a limited number of cryptocurrencies are released, increasing demand and value.

​

​Transaction Speed - Transfers can be completed in minutes.

​

Transaction Cost - It is generally much cheaper to transfer cryptocurrencies than fiat currencies.​

​

​Security - Cryptocurrencies are assigned to a single private key.

​

​Privacy - Identities are masked as the wallet address records transactions.

​

​

Pros & Cons

of

Cryptocurrencies

​

​

Pros

​Protected from Inflation - Only a limited number of cryptocurrencies are released, increasing demand and value.

​

​Transaction Speed - Transfers can be completed in minutes.

​

Transaction Cost - It is generally much cheaper to transfer cryptocurrencies than fiat currencies.​

​

​Security - Cryptocurrencies are assigned to a single private key.

​

​Privacy - Identities are masked as the wallet address records transactions.

​

​Transparency - ​All transactions are recorded on a blockchain register, which is publicly available.

​

​

Pros & Cons

of

Cryptocurrencies

​

​

Cons

​Illegal Transactions - The privacy and security of cryptocurrencies makes it hard for security agencies to trace illegal activities

​

Pros & Cons

of

Cryptocurrencies

​

​

Cons

​Illegal Transactions - The privacy and security of cryptocurrencies make it hard for security agencies to trace illegal activities.

​

Risk of Data Loss - If you lose your private key, you lose your currency.​

​

​The power lies in the hands of a few - Cryptocurrency remain in control of its creators and a limited number of an organisation; this leaves them open to manipulation.

​

​

Pros & Cons

of

Cryptocurrencies

​

​

Cons

​Illegal Transactions - The privacy and security of cryptocurrencies make it hard for security agencies to trace illegal activities.

​

Risk of Data Loss - If you lose your private key, you lose your currency.​

​

​The power lies in the hands of a few - Cryptocurrency remain in control of its creators and a limited number of an organisation; this leaves them open to manipulation.

​

No refunds, No cancellations - if you make a mistake, you can't reverse it. ​

​

Pros & Cons

of

Cryptocurrencies

​

​

Cons

​Illegal Transactions - The privacy and security of cryptocurrencies make it hard for security agencies to trace illegal activities.

​

Risk of Data Loss - If you lose your private key, you lose your currency.​

​

​The power lies in the hands of a few - Cryptocurrency remain in control of its creators and a limited number of an organisation; this leaves them open to manipulation.

​

No refunds, No cancellations - if you make a mistake, you can't reverse it. ​

​

Vulnerable to hacks & scams - ​digital processes are always open to hacking, and there have been several fraudulent cryptocurrency scams.

Pros & Cons

of

Cryptocurrencies

​

​

Cons

​Illegal Transactions - The privacy and security of cryptocurrencies make it hard for security agencies to trace illegal activities.

​

Risk of Data Loss - If you lose your private key, you lose your currency.​

​

​The power lies in the hands of a few - Cryptocurrency remain in control of its creators and a limited number of an organisation; this leaves them open to manipulation.

​

No refunds, No cancellations - if you make a mistake, you can't reverse it. ​

​

Vulnerable to hacks & scams - ​digital processes are always open to hacking, and there have been several fraudulent cryptocurrency scams.

​

Price Volatility - Cryptocurrencies can change dramatically in short periods of time. ​

Pros & Cons

of

Cryptocurrencies

​

​

​

Make a chart or map of the similarity and differences between Fiat currencies and Cryptocurrencies.

​

Save a copy ​for review