Understanding Fiat Currencies
A fiat currency is a form of money issued by a government that derives its value solely from the government’s backing. A fiat currency is exclusively controlled by this authority and does not have a guaranteed exchange rate with another asset, such as gold. The value of a fiat currency is determined by the supply and the demand for it, which may be affected by the stability of the issuing government. The vast majority of commonly used currencies, including the U.S. dollar, are forms of fiat currency.....
