Bitcoin a fiat?


#1

Bitcoin is often (also here) discussed as being something that counters fiat money.

Fiat money is basically money which has no intrinsic value. Usually, it’s paper. The value comes from the fact that governments accept this money as a means of paying taxes. Fiat comes from fiducia (Latin), meaning “trust”.

Now, Bitcoin. Contrary to conventional money, most governments do not accept it for taxes. Bitcoins have no intrinsic value. The only reason Bitcoin is worth what it’s worth, is because people trust it to be worth this.

So…doesn’t this mean that bitcoin actually requires more Fiducia than conventional money? Doesn’t this make bitcoin a fiat currency too?


#2

Here is a few major differences between fiat and Bitcoin

  1. There is a limited supply of Bitcoin. With fiat, governments can print as many as they want at any time.

  2. Bitcoin relys on trusting code. Fiat relies on trusting governments.

I know what cup of coffee I am choosing.


#3

Fiat currency may be a medium of exchange backed by a Government or the financial organization of a rustic .It’s associate degree instrument of debt and a promise in reality worth comparable to the written material.


#4

Well, yes…bitcoin is limited, that is a big difference. I still have some difficulty with the putting trust in some coder I’ve never met over a government. At least the government makes a promise of value, whereas such a thing is absent with any crypto…

This is the main reason why I am still kinda scared about putting money into any crypto…


#5

It isn’t Fiat if that is your question, it attemps to counter act Fiat in every sense of the term.