I said this on a different comment as well but how are Steem and SBD not fiat currencies? That is the only MANDATED and ACCEPTED form of payment within Steemit, which is a decentralized, self-governed environment. Also, as exchanging parties, we determine their value by paying what we think they're worth. Sounds a whole lot like the definition of fiat currency to me.
RE: Vlog 194: Where does the money come from? Crypto currencies vs. Fiat currencies.
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Vlog 194: Where does the money come from? Crypto currencies vs. Fiat currencies.
In an earlier comment @nightwind used the term to describe crypto, and allowed paper currency to hold the fiat designation. Regardless, neither are commodity—we can agree to that. So I believe we are all of the same interpretation.
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Yes crypto has blurred some of the terms for sure.
Fiat has no value but for whats backing it. The US dollar is backed by the economy of the US and all it produces in terms of GDP,
Crypto is backed right now by the fiat for it produces nothing but can be traded for something that does, a countries fiat currency that is backed by that countries GDP or whatever they peg the currency at.. Pull the Dollar and the Euro from it as a backing and boom it has no backing but for a batering coin. The GOVs know this.
The blurred part is that companies like VISA look at cypto or anything else that is not a recognized country fiat as a commodity. I think they do not have a better word for it nor care they just do not trade in commodities so they call it that.
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A fiat currency is like the US dollar or Euro, a backed governmental currency based on a commodity backing like oil , gas, natural reserves, industrial merchandise ect, take the US fiat currency..In the old days it was pegged to gold and silver you could actually take a 20 dollar fiat bill to a bank and get the equivalent in gold given to you. That regulated the money supply to the amount of gold the country had which was not as fast in creating wealth as they wanted so they unpegged it from gold and allowed banks to loan however much they wanted to. today i think they can loan out 9 dollars to ever 1 dollar they have. When they unpegged from gold they used commodities or any hard asset be it oil or corn.
Steem and SBD is not until converted to a above fiat currency.
The form of currency Steemit uses or process is that crypto has to be purchased or given to someone bought with a fiat currency. Then the crypto can be used within the system. In order to have value it in turn has to be exchanged again for fiat currency
All crypto is a decentralized, self-governed environment but has no value unless converted to a gov commodity backed Gov currency like USD or Euro.
You can call any crypto a fiat currency the point is its not backed by a commodity so has no value until exchanged through a fiat backed by a Gov.
Example would you take 5000 usd in crypto for your car knowing you could not exchange that crypto for a a fiat currency backed by a Gov USD or Euro ect. If you do then its called a bartering system. And you would only be able to use the crypto you have to purchase something someone else has to sell that does not want hard currency as in usd or euro and will take only crypto.
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