Currencies are constructed by humans
Money has various functions and requires trust and a market.
Let's compare the concepts of FairCoin2 (to be introduced in 2017) with Bitcoins and traditional fiat money.
|FairCoin2 (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||Certified Validation Nodes||Bitcoin miners||book-keepers & auditors|
|Power consumption||a few Kilowatts
(~50 validation nodes)
|hundreds of Megawatts
(bank towers & money logistics)
|Transaction speed||< 3 minutes||average 43 minutes, may take hours or days||up to hours or even days|
|Fee per transaction||~0,002 € (=0,2 EuroCent to prevent spam transactions)||0.35-0.5€ (as of March 2017)||SEPA: 0€, other countries 3-20 € or up to 5%|
|Risk||low acceptance||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|
|Ethical values||equality, social justice, circumspection, patience, cooperation||speed, risk, competition||competition, exploitation, consumerism, eternal growth|
|Exchange rate||5 Euro-Cent (1:20)||~800 USD (end 2016)||1|
Fiat money is a currency established as money by government regulation or decree.
Blockchain based currencies are like commodities, which create its value from sparsity.