Fiat is a common abbreviated way of saying “fiat currency”. Fiat currency is what people generally think of when they hear the term currency. Put simply, fiat currency is government backed money such as dollars, euros, yen, and yuan. Fiat currency is backed by the governments word and is produced in an inflationary manner, in other words, more fiat is consistently printed and added to circulation. In comparison, cryptocurrency is backed by mathematical rules and can be inflationary, or deflationary, depending on those mathematical rules.