Is Bitcoin FIAT?

in #bitcoin5 years ago

An idea that I've heard more than once now is that Bitcoin (BTC/BCH) is FIAT. The answer like with most matters comes down to how one defines FIAT, however, I wanted to outline what the defining distinction is between Bitcoin and FIAT from a Libertarian perspective.

FIAT is a currency by decree.



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A decree is an official order that has the 'force of the law'.



decree.jpg

The distinction between FIAT and Bitcoin, is that the government uses coercive violence backed by the threat of imprisonment/violence to implement it's FIAT currency.
In other words, it is illegal for people within the U.S to make another competing currency, however, this has not been successfully enforced with Bitcoin due to its censorship resistance.

"Under 18 U.S. § 486, it's a criminal offense to make or pass any metal coins "intended for use as current money, whether in the resemblance of coins of the United States or of foreign countries, or of original design." An offense is punishable with up to 5 years in prison, a fine, or both. This prohibition arguably applies to paper money as well. Article 1, section 8, clause 5 of the U.S. Constitution gives Congress the power to coin money and regulate its value."

The other defining characteristic of FIAT currencies is that they are regulated by a Central Bank. Central Banks are a tenant of communist and crony capitalism. They effectively steal money from individuals by printing money out of thin air which in turn devalues the hard-earned dollars of people. This is essentially counterfeiting and if were performed by an individual would be subject to the harshest penalty however when performed by a government entity or group, it magically becomes a moral act.

quote-we-in-the-congress-have-a-moral-and-constitutional-obligation-to-protect-the-value-of-ron-paul-138-84-43.jpg

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In contrast, no individual or group within Bitcoin has the ability to control the money supply. Furthermore, no one is prevented from creating a competing crypto currency under the threat of law.

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