In the early years of its existence, Bitcoin was ridiculed, but today it has become a financial heavyweight worldwide. One reason for this is the problems with fiat currencies. Fiat is a medium of exchange that derives its value not from an inherent, cryptographic, energy, or commodity basis, but solely from the authority and directives of a governing body, usually a central bank.
Currently, fiat currency cannot be trusted because it is an artificial construct detached from the objective reality of production and trade. Its value is dictated not by material values, but by the directives of governments and central banks, which can devalue it at their discretion.
