Fiat Money in Circulation
I wanted to write about our current 'Money in Circulation' as it is a relatively important topic, which is seldom analyzed by citizens.
'Fiat' money is money/currency in circulation through out the world, without an intrinsic value attached to the money/currency.
The term originates from Latin Language to mean 'Let it become' or 'Let it be done'.
What is Money?
It is a simply what people use as a medium of exchange or a unit of account in a transaction.
The alternative to Fiat money is commodity currency, which is money/currency that has some sort of intrinsic value already.
Once upon a time all currencies were backed by some kind of a commodity like 'Gold', 'Silver' or another value able item.
Fiat money is valuable for no other reason than that the Federal Government saying that it is. Paper money with no 'Commodity Backed' is an example of Fiat Money.
We currently are using this form of currency in this county.
Thank you for visiting,
Ben
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