DeutschFiat money or fiat currencies are those currencies that are circulated with the backing of governments. Issuance and control are carried out here by central and/or national banks. Examples include the US dollar and the common currency Euro. Fiat money generally refers to currencies that are not linked to commodities such as the precious metal gold. It can be increased as often as desired by the centrally responsible body.
The cryptocurrency Bitcoin was invented as a response to this very fiat currency model. Therefore, the supply, i.e. the amount of Bitcoin in circulation, has been limited in the Bitcoin protocol. The halving, which significantly influences the creation of new Bitcoins, is responsible for the limitation.
