Fiat money is currency that has value because a government says so and people accept it - the dirham, the dollar, the euro. It is no longer backed by gold. It is backed by law, by taxes being payable in it, and by millions of people using it every day.
Crypto did not replace that. Most of the market still measures itself against fiat: prices are quoted in dollars, results are counted in local currency, and the most traded coins of all are stablecoins built to track a fiat currency one for one. Understanding fiat is not old-fashioned. It is the ruler the whole market is measured with.
💬 When you check your balance, do you think in dollars, dirhams or coins?
Binance Academy covers this in more depth: https://www.binance.com/en/academy/glossary/fiat
Next lesson: How a peg is held - and how it slips
Trading crypto from Dubai since 2019.
#Fiat #Stablecoins #CryptoEducation