@novaprotocol

Bitcoin is the Fiat of Crypto Bitcoin is often described as “digital gold,” but in reality, it functions more like fiat currency—not because it’s controlled by a central authority, but because its value isn’t backed by anything tangible. Like fiat money, Bitcoin’s price is driven purely by belief, network adoption, and market speculation. While its fixed supply makes it resistant to inflation, it does not inherently grow in value over time—it simply relies on new buyers and a shared assumption of future demand. Bitcoin is not a gold-backed system—it is the fiat currency of crypto, detached from real economic productivity.

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