Fiat refers to traditional currency issued by governments, such as the US dollar, euro, or yen. Unlike cryptocurrencies, which rely on decentralized networks and blockchain technology, fiat money is centralized and regulated by a country’s central bank.The value of fiat is derived from the trust and confidence people have in the issuing government and its economic stability. This allows fiat currencies to be used for everyday transactions, savings, and investments.In contrast, cryptocurrencies are not backed by any physical asset or government promise. Their value is determined by market demand and supply, often leading to high volatility. Fiat currencies can often be exchanged for cryptocurrencies on various platforms, enabling users to convert their traditional money into digital assets. This interaction helps bridge the gap between conventional finance and the growing interest in digital currencies.