Fiat currencies are conventional, they have a long history, even though other solutions or alternatives do too they are a tad bit love more. Burning a fiat paper note may mean treason in most countries, punishable by so much so life imprisonment and death penalty.
How did this currency become so deadly and important?
Well, clearly they have value because governments say that they do. This can be fancily put as having no intrinsic value of their own, but to an increasing number of woke people, that promise means nothing. It has nothing to with national patriotism, ideology or generation gap. It has the most to with disagreeing, rejecting the old set of norms because they are clearly not fit enough for us anymore.
After all, fiat currencies are not backed by any tangible assets. You can’t return the currency to the government other items that might have value to you, say i would like to pay my taxes in wool, or cotton or books or my services, not possible, why not, well because the barter days are over and the only thing of value is money, which actually has no value, how stupid is that!!
Well, i do have a mind of my own, so many like minded people have found their love for a new system to pay, a system that is hated, called freaky and made a buzzword at the same time. If fiat is the currency of the new times, bitcoin or cryptos are the next step of it. People resist change, i do not, along with a plenty others.
Fiat currencies are backed by the full faith and credit of the government that issued them and nothing more. If you want gold, silver, beans, or smokes you need to exchange your fiat currency with a person or entity that possesses the item that you want. As time is passing and the young fertile crypto bodies are growing more and more sophisticated, this is becoming a reality for cryptos too. What is the issue then?