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Post by Roberto on Apr 19, 2024 1:47:02 GMT -5
I've heard the term "fiat" in discussions about economics and cryptocurrency. Can someone explain what fiat currency is?
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Post by Esper on Apr 19, 2024 6:24:03 GMT -5
Fiat currency refers to any legal tender whose value is backed by the government that issued it, rather than a physical commodity like gold or silver. It is the most common type of currency used globally and includes the US Dollar, Euro, and many others. The value of fiat money is largely based on public trust and the stability of the issuing government. For a clearer understanding of how fiat currencies contrast with cryptocurrencies, you might find this article helpful: paybis.com/blog/glossary/what-is-fiat/ It explains the basics and significance of fiat in the modern economy. |
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