Crypto-Currencies/Bitcoin Vs. Fiat Money_ V.0.1

Fiat Money

I hope many of us don't know what is fiat money or may know & through google we can learn and also get notion on it. But as a general person & as of expert what is fiat money & getting its explanation from economist is essential to know for each demographic mob also eventual for traders. However, I choose this topic this time because we doesn't have clear idea about fiat money and create mix up in tenure of trading results loss in business or affect on decision of market trading & index posture. Whatever, I would try to pledge a clear & absolute idea on that each and everyone can get proper notion And views which would provide a good pace on trading decision also can craft the differentiation in indexing between BTC/Crypto-currencies market and fiat money.

Fiat money Vs. Crypto-Currencies

Origination of Fiat Money

In 11th century of China first originated fiat money and which became wide spread during the tenure of Yuan & Ming dynasties. Approximated in 10th century of Jiaozi, in that tenure Song dynasty of China issued first paper money. Marco Polo we know his name, who was one of the best travelers in the world and his directory books still followed to maintain the route in the sea. Marco Polo described in his book " The Travels of Marco Polo"  about Fiat money in tenure of Yuan Dynasty during 13th century, where he mentioned - 

First paper money of china. Jiaozi-Yuan & Ming Dynasty

"All these pieces of paper are issued with as much solemnity and authority as if they were of pure gold or silver and indeed everybody takes them readily, for where so ever a person may go throughout the Great Kaan's dominions he shall find these pieces of paper current, and shall be able to transact all sales and purchases of goods by means of them just as well as it they were coins of pure gold"

     __ Marco Polo, The Travels of Marco Polo.

According to Marco Polo Fiat money is issued paper which get legal tender where the rate of exchange depends on the value of gold or silver or other precious thing and by this everyone of that time can buy or sell their commodities through this paper money.   

The Government of that tenure take various strive to support the paper by claiming taxes proportionately in currency and crafting other laws though vandalization had done and the currency fell out of flavor. The notes were initially to be repossess after three years service, to be replaced by new notes for a three percent service charge, whether the notes were printed more rather having not to make those retired, as a result inflation became apparent.

In Europe, due to gold shortage, tally sticks were employed as fiat currency in medieval England, where Henry initiated the use of that exchequer in or around and royal taxes paid in tally sticks. In 1661, Johan Palmstruch issued the first regular paper money in the West, under royal charter from the Kingdom of Sweden, through a new institution, the Bank of Stockholm.

Definition of Fiat Money

Fiat money is inaugurate as money through the protocol or regulation of government, which is become a currency that haven't any inherent value. In eventual prospects this currency hasn't any value but it has value when Government initiates and maintain its value or different parties are involved in exchange agree on its value. Which had been acquainted as an option to commodity money and representative money. The term fiat derives from the Latin word 'fiat' which means "let it be done" used as the sense of order decree or resolution. Fiat money can be define in various way like_

• The currency issued by state which is not convertible by law or any other thing nor in terms of objective it doesn't have fixed value.
• Congenitally this valueless money used as money of Government proclamation or decree.
• An inherent value & useless object used as money which serves the medium of exchange, also called Fiduciary money.
• The money act as legal tender declared by State authority or Government. 

So, when gold or silver backing the representative money necessitates the requirements that the retrieving it in fixed weights of gold or silver issued by bank while Fiat money not related to any physical quantity of its value. A coin is fiat currency in extent that has its face value which defines or determine by law where actual value have to be greater then its market value as of Metal.

Crypto's Vs, Fiat Money.

Crypto-Currency/BTC Versus Fiat Money 

Many of us don't know eventually is BTC/other crypto's are fiat money or something else? The answer is very much clear according to definition and fiat money origination that BTC/Other Crypto's are fiat money cause it has legal tender for transaction but value is not fixed which depends on exchange of market states. This definition may make it more clear the term "Currency that a government has declared to be legal tender, but is not backed by a physical commodity. 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". So, I would try to make absolute & clear notion on Fiat money and has any co-relation with Crypto-currencies/BTC and also representing the expert views about those medium of exchange & values. In my next blog post I would try to pledge some extent of ideas on market of fiat money & indexing as value of crypto's like BTC/BCH and relation & indifference between.

Any help or question please leave a comment on comment box and inspire me to write more informative blog post by subscribing my blog site .. 



My Facebook page_

https://www.facebook.com/deshifreelancer/


Follow me in twitter & Instagram _

https://twitter.com/FreneticGraveya & https://www.instagram.com/frantichasn/


Connect me in linkedin.in_

https://www.linkedin.com/in/frantic-hasn-89247915b/

Watch Related Videos From This Youtube Channel_

https://www.youtube.com/channel/UCLHPFNborJMQd3qbeGlmyDw?view_as=subscriber