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It is not a fiat currency. https://en.wikipedia.org/wiki/Fiat_money https://en.wikipedia.org/wiki/Fiat_money It is not backed by any government, it is not leg
by nathas 13y ago
It is not a fiat currency.
https://en.wikipedia.org/wiki/Fiat_money https://en.wikipedia.org/wiki/Fiat_money
It is not backed by any government, it is not legal tender, and it is not state issued.
It has no intrinsic value, you're right about that part.
- ubernostrum 13y agoFiat currency does not have to be issued by a government, and does not have to be legal tender. And Bitcoin certainly meets one of the "various" definitions given in the Wikipedia article. There are plenty of other definitions of the term it meets -- at root, a fiat currency is simply a currency whose value exists because someone said so, rather than because it's tied to something else. And... well, Bitcoin has value because people say it does, not because it's tied to something else.
- dkuntz2 13y agoBut that's true of a good portion of currency. The USD became a fiat currency in 1971.
- redblacktree 13y agoIt's part of the definition of "Fiat currency." i.e. It's issued by fiat[1]. [1] fi·at ˈfēət,ˈfēˌät noun 1. a formal authorization or proposition; a decree.