Money

https://www.ig.com/uk/glossary-trading-terms/fiat-currency-definition

Examples of a fiat currency

Well-known examples of fiat currencies include the pound sterling, the euro and the US dollar. In fact, very few world currencies are true commodity currencies and most are, in one way or another, a form of fiat money.

What is a fiat currency?

A fiat currency is a national currency that is not pegged to the price of a commodity such as gold or silver. The value of fiat money is largely based on the public’s faith in the currency’s issuer, which is normally that country’s government or central bank.

If you the Reader have read many of my posts on the subject & don't get it, having read the above do you now finally get it? The GBP - '£' is worthless.

https://www.investopedia.com/terms/f/fiatmoney.asp

What Is Fiat Money?

Fiat money is a government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it. The value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government, rather than the worth of a commodity backing it. Most modern paper currencies are fiat currencies, including the U.S. dollar, the euro, and other major global currencies.

Understanding Fiat Money

The term "fiat" is a Latin word that is often translated as "it shall be" or "let it be done." Thus fiat currencies only have value because the government maintains that value; there is no utility to fiat money in itself.

Fiat currency came about when governments would mint coins out of a valuable physical commodity, such as gold or silver, or print paper money that could be redeemed for a set amount of a physical commodity. Fiat, however, is inconvertible and cannot be redeemed simply because there is no underlying commodity backing it.

Because fiat money is not linked to physical reserves, such as a national stockpile of gold or silver, it risks losing value due to inflation or even becoming worthless in the event of hyperinflation. In some of the worst cases of hyperinflation, such as in Hungary immediately after WWII, the rate of inflation can double in a single day.1

Furthermore, if people lose faith in a nation's currency, the money will no longer hold value. This is much different from a currency backed by gold, for example; it has intrinsic value because of the demand for gold in jewelry and decoration as well as in the manufacturing of electronic devices, computers, and aerospace vehicles.

History of Fiat Money in the U.S.

The U.S. dollar is considered to be both fiat money and legal tender, accepted for private and public debts. Legal tender is basically any currency that a government declares to be legal. Many governments issue a fiat currency, then make it legal tender by setting it as the standard for debt repayment.

Earlier in U.S. history, the country's currency was backed by gold (and in some cases, silver). The federal government stopped allowing citizens to exchange currency for government gold with the passage of the Emergency Banking Act of 1933. The gold standard, which backed U.S. currency with federal gold, ended completely in 1971 when the U.S. also stopped issuing gold to foreign governments in exchange for U.S. currency.23

Since that time, U.S. dollars are known to be backed by the "full faith and credit" of the U.S. government, "legal tender for all debts, public and private" but not "redeemable in lawful money at the United States Treasury or at any Federal Reserve Bank," as printing on U.S. dollar bills used to claim. In this sense, U.S. dollars are now "legal tender," rather than "lawful money," which can be exchanged for gold, silver, or any other commodity.4

Why Is Fiat Money Valuable?

In contrast to commodity-based money like gold coins or paper bills redeemable for precious metals, fiat money is backed entirely by the full faith and trust in the government that issued it. One reason this has merit is that governments demand that you pay taxes in the fiat money it issues. Since everybody needs to pay taxes (no they don't), or else face stiff penalties or prison, people will accept it in exchange (this is known as Chartalism). Other theories of money, such as the credit theory, suggest that since all money is a credit-debt relation, it does not matter if money is backed by anything to maintain value.

There it is, finally do the non-converted get it? Its ALL fake & worthless, bits of inked paper & nothing else.

more here,
https://www.sofi.com/learn/content/fiat-currency/

https://www.forex.com/en-us/news-and-analysis/what-are-fiat-currencies/

What is fiat currency?

Fiat currency is a national currency whose value is derived from a country’s promise to back it, not from physical commodities like gold or silver. Fiat money is backed by the general public’s faith in a country’s central bank and the national government issuing that money. If a country were to become insolvent, its fiat currency would drastically lose value.

The value of fiat money is constantly shifting. The ever-changing value of fiat currencies is shown in foreign exchange, the global marketplace for exchanging national currencies.

Why is it called fiat currency?

The word ‘fiat’ is a Latin word meaning determination by authority. For fiat currencies, value is determined by authorities like national governments and central banks.

Examples of fiat currency

Popular examples of fiat currencies include the euro, Japanese yen, US dollar and pound sterling. Nearly all national currencies are fiat currencies, although the value of many currencies are linked directly to the export of a nation’s commodities.

For example, the Russian ruble and Canadian dollar are both strongly influenced by the price of oil. However, they are still considered fiat currencies because each individual ruble or dollar is not backed by a physical barrel of oil.

Is Bitcoin a fiat currency?

Bitcoin is not a fiat currency because it is not issued by a government or regulated by a central authority. Instead, Bitcoin and other cryptocurrencies are backed by blockchain technology. Cryptocurrencies like Bitcoin are decentralized, meaning no single authority controls their supply or value.

What are the three types of money?

Money as a financial instrument can be classified as one of three forms. While there are other derivative products that have monetary value, they do not function as immediate forms of payment that can be transferred for goods and services.

Commodity: Commodity money is the oldest financial instrument. Forms of commodity money have been salt, beads, seashells, tobacco, silver, and gold. The invention of commodity money allowed for a standard system of trade among and between civilizations. Unlike forms of money to be developed later, commodity money has a tangible store of value. It can be seen and touched, and the proven value of its physicality is what gave users trust in it.

Fiat: Fiat money originated during the Chinese Tang dynasty in the 11th century as pieces of paper, each one being authenticated by government officials. The general principle of fiat money remains the same today. It gets its value from the backing of governments, allowing individuals and businesses to put their faith in it as long as they have faith in their government.

Representative: Representative money is a government-produced instrument backed by a commodity or fiat currency. Examples of representative money include checks and credit cards. Typically, representative money is a placeholder when the user intends to pay at a later date. Like fiat money, representative money does not have intrinsic value. Its value is instead derived from the financial institutions that uphold it.