The Skinny on Bitcoin

Precious metals, gold, silver, copper, have been used as payment for goods and services as early as 2500 B.C. Such money made of precious metals was called commodity currency because it had intrinsic value, the precious metal which could be melted or shorn on the edges to make gold dust.

Currency circulating today, not backed by gold or silver since August 1971, is fiat currency, created and authorized by governments as their official currency. It has value only because the government says it does and there is faith in that particular government that prints the currency.
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