First launched in 2009, Bitcoin has endured much debate as to whether this particular currency (and indeed all other cryptocurrencies) is as reliable as traditional fiat currency. Consequently, there are pros and cons for both types and so it really depends on the individual user as to which they adopt as their preferred method of payment. One thing is certain, that whilst this first half of 2022 the value of cryptocurrency has taken a significant nosedive in value, the currency is still growing in popularity with rising value anticipated over the next few years.

By understanding the positives and negatives for cryptocurrency and fiat currency can help investors to make the right choices. Here are some of our roundups:

Pros & Cons of Fiat Currency


  • Fiat currency is classed as legal tender and is government regulated.
  • Fiat money is widely accepted around the world.
  • Fiat money is stable which means that businesses and organisations can rely on being able to access it as and when they need to 24/7.


  • It can take a long time to process fiat currency payments.
  • Individual currencies are subject to inflation which means that their value can depreciate over time.
  • Fiat money is controlled by government which means that it can become subject to their decisions.
  • Your spending habits are visible to governments as they can trace money back to you.

Pros & Cons of Cryptocurrency


  • Perfect for businesses who make cross-border payments such as online retailers
  • Transactions are anonymous and difficult to trace, ideal for businesses who prefer to keep transactions private.
  • Transactions are made through the blockchain which is highly secure and cannot be tampered with.
  • Cryptocurrency transactions are extremely fast at the verification and processing stage.


  • The currency can be extremely volatile. At the beginning of 2022 Bitcoin was worth around 40K, since then the value has dropped to just 17K.
  • Cryptocurrency is not regulated and so governments have very little control over it. This can be problematic for businesses who need to comply.
  • The currency is not yet widely accepted as a means of payment; however, it is growing in popularity.

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