A FEW WORDS ABOUT FIAT… BECAUSE BITCOIN IS NOT JUST A CAR

Apparently the financial voice for baby boomers (those born post World War II), Neale Godfrey has a poke at describing fiat and bitcoin, and differences via a Forbes article. Neale starts with the explanation that the fiat she is referring to is not the model of car. And to be fair, most people in this generation and the last do not have an understanding of what fiat in the monetary sense is.
Fiat is commonly referred to as paper money, centrally controlled and inflatable to infinity. Usually created by a government and defined as the countries legal tender and the means to pay one’s taxes.
Bitcoin and Fiat
Neale then proceeds to point out ‘the biggest phenomenon around fiat currency today: Bitcoin.’ Which is essentially correct, however, she then labels bitcoin as a fiat currency that is not controlled by any government.
One of the purposes of her article is to guide the readers, the baby boomers, to talk with their children and grandchildren, to explain to them what fiat is.
It should be clarified that fiat is not always a medium of exchange. The Zimbabwe dollar, for example, it is a fiat currency, but good luck trying to use Zimbabwe dollars as a medium of exchange.

This post was published at Crypto Coins News on March 13, 2015.