Fiat Currency
Government-issued currency not backed by a physical commodity, deriving value from government decree and public trust.
In-Depth Explanation
Fiat currencies (USD, EUR, etc.) are what crypto is often compared against. Unlike gold-backed currencies, fiat's value comes from legal tender laws and monetary policy. Crypto proponents cite fiat's inflationary nature and central control as motivations for alternatives. The term 'fiat' in crypto contexts often carries implicit criticism of traditional money.
Related Terms
Stablecoin
A cryptocurrency designed to maintain a stable value relative to a reference asset, typically the US dollar.
Bitcoin
BTCThe first and largest cryptocurrency, created by Satoshi Nakamoto in 2009 as a peer-to-peer electronic cash system.
Inflation (Token)
The rate at which new tokens are created and enter circulation, diluting existing holders.
More in Infrastructure
View all →Gas Fees
Transaction fees paid to validators/miners for executing operations on a blockchain.
Gwei
A denomination of Ether equal to one billionth of an ETH, commonly used to express gas prices.
Layer 2
L2Scaling solutions built on top of a base blockchain (L1) that process transactions off-chain while inheriting L1 security.
Layer 1
L1The base blockchain that provides security and consensus, such as Ethereum, Bitcoin, or Solana.