Topic: What is Fiat? - page 2. (Read 195 times)
Fiat money is a currency without intrinsic value that has been established as money, often by government regulation. Fiat money does not have use value, and has value only because a government maintains its value, or because parties engaging in exchange agree on its value.[1] It was introduced as an alternative to commodity money and representative money. Commodity money is created from a good, often a precious metal such as gold or silver, which has uses other than as a medium of exchange
The general definition of fiat money is that it is a legal currency declared by government to be legal tender. Also it can be said Fiat money is legal tender whose value is backed by the government that issued it.
Fiat is the traditional paper money, usually the price and value of the cryptocurrencies are also compared with fiat, the fact remains that the market volume is also indicated by fiat so we cannot just disassociate fiat from crypro market.
Almost all everyday, I come across fiat on bitcointalk forum which get wondering why people normally use that term in relation to crypto currency. I decided to do research on the word but did not get the concept well. Since the word is circulating in bitcointalk forum and my searches are not helping to understand the concept of fiat better, I am sure the forum will help me understand it better this time around. Guys, I want to know much about the concept of fiat and what fiat has got to do with crypto currency.
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