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URL:  https://boards.fool.com/bitcoin-is-also-a-fiat-currency-as-are-all-33036934.aspx

Subject:  Re: OT-Bitcoin Date:  4/12/2018  11:46 AM
Author:  mungofitch Number:  270370 of 279138

Bitcoin is also a fiat currency, as are all currencies, including gold for that matter.

Hmm, not by conventional definitions.
Fiat basically comes from some entity saying "make it so", in the sense that the value comes from trusting that entity or obeying the command of that entity.
If there isn't an entity whose will you're trusting or obeying, it's not in that strict sense a fiat currency.

In the case of Bitcoin, whose will exactly are you trusting? Whose decree are you following?
There is no entity that requires you to use a bitcoin to pay for anything. Your taxes, say. Or who backs up its value with its promise.
It does meet one of the four definitions suggested at Wikipedia, "an intrinsically useless object that serves as a medium of exchange".
So colloquially you might think of it as a fiat currency in that it is not backed by any hard asset. But it's not fiduciary money.

Gold is just gold.
Not very good as a currency, but it can be pressed into service. Or into coins.
It's not a fiat currency in any definition that I've seen.

Jim
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