Currencies are constructed by humans.
Money has various functions and requires trust and a market.
Let's compare the concepts of FairCoin with Bitcoin and traditional fiat money.
| FairCoin (FAIR) | Bitcoin (BTC) | Dollar (USD) | |
|---|---|---|---|
| Business | fair products & services | grey & dark business | industry & oil driven |
| Controlled by | Fair.Coop assembly (democratic processes) | Nerds & Chinese investors | FED (owned by banks, not controlled democratically) |
| Transactions validated by | Cooperatively Validating Nodes | Bitcoin miners | book-keepers & auditors |
| Power consumption | a few hundred Watts (~30 validation nodes) |
~300 Megawatts (mining ASICs) |
hundreds of Megawatts (bank towers & money logistics) |
| Transaction speed | < 3 minutes | average 43 minutes, may take hours or even days | up to hours or even days |
| Fee per transaction | ~0,003 € (=0,3 EuroCent to prevent spam transactions) | 0.35-5 € (see chart) | SEPA: 0 €, other countries 3-20 € or up to 5% |
| Risk | low acceptance at merchants | 51% attack | banks crashing |
| Money Supply | none, remains constant | 54000 BTC per month by mining until 2020 | 180 billion USD per month by quantitative easing |
| Value creation by | honest products & services | speculators | bubbles & quantitative easing |
| Ethical values | equality, social justice, circumspection, patience, cooperation | speed, risk, competition | competition, exploitation, consumerism, eternal growth |
| Governance | democratic | oligarchy | monopoly |
| Exchange rate |
1.20 Euro within the FairCoop community. |
~ 3600 USD (as of March 2019, see chart) | 1 |
Fiat money is a currency established as money by government regulation or decree.
Blockchain-based currencies are like commodities, which create their value from scarcity.
Watch our video, which explains well the difference between fiat and crypto money.