Fiat Currencies


Fiat Currencies are currencies issues by governments that are not backed by hard assets (like gold), but are backed by faith in the government

More About Fiat Currencies

  • Fiat currencies are only money because governments say they are.  They do not meet the traditional requirements of money
    • They do not have an intrinsic value - they'd be worthless without the backing of the government

Risks of Fiat Currencies

  • They can be issued in unlimited volumes (and thus lose value to inflation)
  • Most countries are technically bankrupt (2018), so it's likely they will print more to pay bills