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Dictionary definitions of fiat money involve states that enforce the legal tender status of the money. In that sense, BTC is not fiat money.
by mbrock 10y ago
Dictionary definitions of fiat money involve states that enforce the legal tender status of the money. In that sense, BTC is not fiat money.
- abritinthebay 10y agoTrue, "fiat money" would technically be "inconvertible paper money made legal tender by a government decree." Bitcoin by contrast is "inconvertible digital money made legal tender by no-one because it's not legal tender". So.. it's fiat in the sense that "by fiat" sense - which is where fiat money as a term comes from, but not in the strict "fiat money" sense of the phrase.
- gnaritas 10y agoFiat also means money that isn't a commodity or backed by a commodity. Bitcoin is fiat in this sense the same as USD. Additionally, the blockchain and it's rules are a form of government that is issuing bitcoin and thus it qualifies as government issued as well. You don't have to be a state to be a government.