Post
Topic
Board Economics
Re: Ruble in freefall... Too bad for those people they outlawed Bitcoin! hahaha
by
marcus_of_augustus
on 17/12/2014, 21:50:06 UTC
“At the end fiat money returns to its inner value—zero.”
- Voltaire

Bitcoin is by definition a fiat currency:

The value of fiat money is derived from the relationship between supply and demand rather than the value of the material that the money is made of. Historically, most currencies were based on physical commodities such as gold or silver, but fiat money is based solely on faith. Fiat is the Latin word for "it shall be".
http://www.investopedia.com/terms/f/fiatmoney.asp

fiat means "by decree" ... as in the govt says "this piece of paper shall be money" and the people take it on faith (shared illusion).

Oxford english definition of fiat

Quote
A formal authorization or proposition; a decree: e.g. the reforms left most prices fixed by government fiat

Investopedia is a lightweight useless reference source it seems.

Bitcoin has collectable, numismatic, utility and cost of production value as determined by the market and NO government has decreed it as money. It is demonstrably NOT a fiat money.