Fiat money

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Fiat money

Nonconvertible paper money.

Fiat Money

Money that is not backed by anything other than a government trust. Fiat money has no intrinsic value; it only has value at all because all participants in an economy agree to trust the government issuing the currency. All modern money is fiat money. While deflation is possible for fiat money, it is much more susceptible to inflation.
References in periodicals archive ?
Thus Payza is the complete online payment provider, enabling people to send, receive and trade in various fiat currencies and crypto currencies with ease, as and when required from across the globe.
Volatility of Bitcoin prices in fiat currencies can create large gains or large losses in one's Bitcoin value that makes the system unsustainable, at least in the short term.
Contrary to conventional wisdom, our research shows that fiat currencies crowd out Bitcoin, not the reverse, and that the design and size of the Bitcoin market deprives the currency of its intended use as a medium of exchange," KiHoon Hong said.
In short, governments that embrace a fixed-value approach want stability in their monetary arrangements, instead of the unpredictability inherent in Soft Money approaches with floating fiat currencies of unpredictable values managed by bureaucrats with unpredictable opinions of what to do next.
Most modern economists blithely accept the need for monopoly fiat currencies controlled by central banks, collected as taxes, and monitored for illegal activities by regulators and commercial banks.
Investors paid for their shares in bitcoin, a virtual currency that can be used to purchase real-world goods and services and exchanged for fiat currencies on certain online exchanges.
Assuming the awareness continues spreading through 2014 and beyond, virtual currencies can form a strong complementary system to our traditional method of paying for goods and services, but they will never completely replace our fiat currencies.
Last week, the spectacular failure of the Japan-based MtGox trading exchange set off alarm bells over Bitcoin, which backers have promoted as a low-cost alternative to fiat currencies such as the US dollar or Japanese yen.
The price had dropped 8% overnight, a change inconceivable in other fiat currencies.
not have an unlimited supply, and is different to fiat currencies, which can be supplied on an infinite basis (inflation).
Gold should be a part of your portfolio as a hedge against loss of confidence in fiat currencies.
The recent additions to the central bank's reserves could now suggest a more cautious approach to fiat currencies as a whole and the dollar in particular, even though the tonnage involved is minimal.