Currency not backed by gold or silver. The word “fiat” means “command” or “decree”, translated from Latin as “let it be so”. Fiat money derives its legitimacy from the issuer's power to tax, or to punish. When we look at history, we see that every fiat currency has failed. Fiat currency has no real value behind it. As long as “faith and credit” are serviceable, a semblance of order can be maintained. Historically, every attempt to intangibly back currency in this manner has failed.