Fiat currency is a term you'll often hear in the world of Bitcoin. Fiat is money issued by a government. Unlike gold or silver, which have inherent value; fiat currency's value comes from the trust and authority of the government that backs it.

Bitcoin was created as an alternative to traditional fiat currencies, like US Dollar (USD), Euro (EUR), and Japanese Yen (JPY). Bitcoin is a decentralized, borderless, and digital form of money that operates independently of any government or central authority.

The term 'fiat' is used to contrast government-issued currencies and the revolutionary nature of bitcoin. It's a way of highlighting the difference between the old financial system and the new, innovative world of cryptocurrencies.

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