Traditional banking systems are centralised, meaning they are controlled by a single authority, such as a government or central bank. Cryptocurrency, on the other hand, is decentralised, meaning it is not controlled by any single entity. This decentralisation aims to eliminate the need for intermediaries, reduce the risk of censorship or manipulation, and give users more control over their money.
Cryptocurrency transactions can be conducted globally, without the need for traditional banking infrastructure or intermediaries. This enables fast and low-cost cross-border transactions, making cryptocurrency particularly useful for remittances and international payments.
Cryptocurrency has the potential to provide access to financial services for individuals who are underserved or excluded by traditional banking systems. Anyone with internet access can participate in the cryptocurrency ecosystem, regardless of their location or socioeconomic status.
Central banks have the authority to control the value of traditional currencies by adjusting interest rates, implementing quantitative easing measures, or printing more money. Unlike traditional currencies, which are controlled by central authorities like governments or central banks, cryptocurrencies operate on decentralized networks powered by blockchain technology. For example, Bitcoin has a fixed supply cap of 21 million coins.
