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The definition of fiat means by decree. In other words fiat currency has value because a central government authority (formerly king) decrees that the paper has
by lowkey 6y ago
The definition of fiat means by decree. In other words fiat currency has value because a central government authority (formerly king) decrees that the paper has value. Bitcoin has no central authority that decrees it has value - only demand by the people drives the value of Bitcoin.
Bitcoin may be a lot of thing, but it isn't a fiat currency.
- lottin 6y agoA currency created "by fiat" means it's created without backing. "A novelty of the 20th century was the issue of fiat currencies by governments. ("Fiat" means not backed by any reserve commodity, as the gold- and silver-based currencies of previous centuries were)." [1] [1] https://nakamotoinstitute.org/shelling-out/ https://nakamotoinstitute.org/shelling-out/