Fiat currency is money that a government has declared to be legal tender, but is not backed by a physical commodity. For example, the US currency is “backed by the full faith and credit of the US government.” The US used to be based on the gold standard where you could exchange a dollar for a set amount of gold. The US officially ended the gold standard in 1933 but it wasn’t until 1971 that the US would no longer convert dollars to gold at a fixed rate.
Anything which is "fiat" including those cars is something for which there is supply but very little demand. A "fiat currency" is what it is because someone you don't want to argue with, like Kim Jong Un, said so.
This is as opposed to the dollar, pound, euro, yuan, yen, etc which are currencies for which there is unquestionable demand.
If you're interested, we should talk a bit (for free). I specialize in education and collaboration that includes the professional financial stuff done without the high cost. And I give customers the same professional tools that are usually limited to the yacht-owner crowd. Let me know!
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.