What fiat money is
Fiat money is government-issued currency that is not backed by a physical commodity such as gold.
Its value depends on trust in institutions, legal frameworks, and monetary policy.
How bitcoin is different
Bitcoin is decentralized, has a fixed supply, and operates on open-source software rather than central bank policy.
It does not require trust in a single issuer or operator.
Why the comparison matters
Comparing bitcoin to fiat helps clarify why people care about scarcity, monetary expansion, and financial sovereignty.
The two systems are built on very different assumptions about money and control.
Bottom line
Bitcoin and fiat money reflect two very different models for how value should be issued, managed, and trusted.