In many cryptocurrency forums and Social Media groups, you will see the term FIAT money being mentioned. But what exactly does the term stand for?
What is FIAT money?
Fiat money is a currency issued by the government. The intrinsic value of government money is determined by the supply and demand as well as the stability of the issuing government, instead of a commodity’s valuation. For that reason, it is not backed by a physical commodity, such as gold or silver.
What are the popular government-based currencies?
The money you currently use in your daily life, to perform purchases for a variety of reasons, is considered to be FIAT money. Currencies like the U.S. Dollar, the Japanese Yen (JPY), Euros (EUR), Australian Dollar (AUD) and the Brittish Pound (GBP) are all examples of government-based currencies.
Can I buy Bitcoin with FIAT currencies?
Yes, you can. Depending on the exchange you choose to perform your transaction you will be eligible to purchase Bitcoin with most currencies. Paybis exchange allows you to buy Bitcoin with GBP, EUR, and USD.