I have been studying the difference between Fiat and Bitcoin but I still get it twisted to understand what a Fiat mean, I would like the experienced members here to tell me the difference, I got to understand what a Bitcoin is all about but still confused on Fiat .
Thank you all
Fiat in simple terms means the paper money that you use as legal tender in your daily financial dealings. For instance, in Nigeria, we have naira notes of different values ranging from 5 naira, 10 naira, 20 naira, 50 naira, 100 naira, 200 naira, 500 naira and 1000 naira. We use them to make legal tender as it's fully backed by the federal law if the county.
Bitcoin on the other hand that is a digital currency that was created to serve as money and a form of payment. Unlike fiat that's been controlled by the government, Bitcoin is absolutely decentralized, meaning that it is not controlled by anyone, group of persons or entity hence, removing the need for a third party participation in financial transactions