Bitcoin is a decentralized digital currency, while traditional fiat currencies are issued and regulated by governments. Bitcoin operates on a technology called blockchain, which is a distributed ledger that records all transactions. Fiat currencies, on the other hand, are backed by the issuing government and are regulated by central banks. Additionally, the supply of Bitcoin is limited to 21 million coins, while central banks can issue more fiat currency as needed. Transactions with Bitcoin are usually pseudonymous and can be conducted globally without intermediaries, whereas fiat currency transactions often involve banks or payment processors.
