Modern currency is much more uniform and regulated. Major currencies in the world today take on the physical form of paper bills or coins which are easily carried on a person, but most of a person's currency is typically stored in digital accounts. The value of these currencies is backed by the promise of their issuing governments, which makes them fiat money currency declared by the government to be an official medium of payment but is not backed by a physical commodity. Before fiat money existed, currencies were usually backed by a commodity such as gold or silver. To better understand this asset class, its valuation, and the varying volatilities of the diverse crypto markets, we are doing a deep dive into the crypto ecosystem by performing a study that compares various crypto assets among themselves and with more traditional assets such as equity markets, bond indices, gold, and fiat-pegged currencies using data through August 2022. Of note, understanding volatility risk is paramo
