ELI5: What is the difference between crypto and fiat currency

Fiat currency is money like dollars or euros that your government says is worth something, while crypto is like digital tokens that many people agree have value, but no single government controls.

Imagine you and your friends are playing a game.

• Fiat currency is like the monopoly money your parents give you. The bank (your government) says it's worth something, and everyone in the game (the country) agrees to use it because the bank promises it’s good. You can use it to buy things at the store, and the store accepts it because they know everyone else will too.
• Crypto is like creating your own special tokens for the game. Let's say you call them "Sparkle Bucks." You and your friends decide that one Sparkle Buck is worth, say, two pieces of candy. Now, you can use Sparkle Bucks to trade with each other.

• Who controls it? The government controls fiat currency. They decide how much to print and how much it's worth compared to other countries' money. Nobody controls crypto in the same way. Instead, it relies on a network of computers and a shared agreement among many people about its value.
• Where can you use it? You can use fiat currency almost everywhere in your country. Crypto can be used at some stores online or in person that choose to accept it, but not everywhere yet.
• Who says it's worth something? The government says fiat currency is worth something. With crypto, its value is determined by what people are willing to pay for it. If lots of people want Sparkle Bucks, they're worth more candy! If nobody wants them, they're worth nothing.