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Fiat currency isn't pegged to a specific value, but it does have government backing that gives it a baseline value. Want to own a house? Even if you buy it wit
by TheCoelacanth 4y ago
Fiat currency isn't pegged to a specific value, but it does have government backing that gives it a baseline value.
Want to own a house? Even if you buy it with bitcoin, you're going to need fiat to pay for the property tax bill.
Get paid wages? Even if you get paid in bitcoin, you still need fiat to pay the income tax bill.
Sell something? Even if you sold it for bitcoin, you still need fiat to pay the sales tax.
- derangedHorse 4y agoThe government doesn’t give it a baseline value, it just has the power to force people to use the national currency when doing business involving legal affairs and the like (which may help bring up its value). Even then, I know of 3rd world countries that prefer the US dollar for all day to day (peer to peer) transactions even when the local government has their own currency established.