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Fiat Money

February 20, 2014 8:17 AM

I've been reading up on Bitcoin quite a bit lately after reading a very interesting, thought-provoking post on the subject by Marc Andreessen, titled Why Bitcoin Matters. Though what I've read and learned about Bitcoin itself is probably worthy of a blog post of its own, I learned something tangential tonight about "fiat money," which happens to come up fairly often when reading about Bitcoin.

According to Wikipedia, fiat money is any money that has been declared by a government to be legal tender. Or, more interestingly:

A coin containing valuable metal may be considered fiat currency if its face value is defined by law as different from its market value as metal.

And to think I only ever thought of J-Lo whenever I heard the term "fiat." :)

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