- Fiat money is a currency established as money by government regulation or law. It differs from commodity money and representative money.
- Demonetised currency are not fiat money as they are not legal tender
- Commodity money is created from a good, often a precious metal such as gold or silver, which has uses other than as a medium of exchange,
- while representative money simply represents a claim on such a good.
- Fiat Money don’t have intrinsic value and are also called legal tenders as they cannot be refused by any citizen of the country for settlement of any kind of transactions.
- Cheques can be refused by anyone as a mode of payment. Hence they are not legal tenders/fiat money
Bitcoin is a digital currency that is not supported by any country’s government or central bank. It can be traded for services or goods with sellers who accept bitcoins as payment. Bitcoin was first introduced in October 2008. It was invented by an unidentified programmer, or group of programmers, under the name of Satoshi Nakamoto. The system […]