Bitcoin Fiat Currency Exchange
When it comes to finding the best bitcoin exchange things are not all that easy. Why is this so? Simply because many of the best sites to buy bitcoin are rather recent online, that they had little get the word out about their services and products. Most people coming to this page will be asking how to buy bitcoin online through a secure means.
Fiat money is the currency that a government has declared to be legal tender, but it is not backed by a physical commodity. The value of fiat money is derived from the relationship between supply and demand rather than the value of the material that the money is made of
A fiat currency has no intrinsic value. In other words, its value is not based on a precious metal. Monetary policy determines the purchasing power of the currency. The exchange rate regime involving fiat currencies is called a flexible or floating exchange rate regime, where the exchange rate is determined in international foreign exchange markets.
An international monetary system in a fiat currency world is characterized by floating exchange rates. In fact, most developed countries’ exchange rates are characterized as such. There is the possibility of government as well as central bank intervention in exchange rates under the floating exchange rate regime.