So there I was, casually scrolling through Twitter (aka the land of hot takes and football arguments), when I saw someone tweet:
“Fiat is dead. Bitcoin is the future. Educate yourself.”
Naturally, I did what any responsible first-year Economics student would do — googled “what is fiat” and hoped it didn’t mean I’d missed an important lecture.
Turns out, it doesn’t mean the car. (We’re safe… for now.)
But jokes aside — this whole “Bitcoin vs fiat” debate isn’t just crypto nerd talk. It actually says a lot about where our money is heading, and as people who are going to be living in that future (and trying to afford rent in it), I think it’s worth understanding.
So… what is fiat money?
Fiat is the “normal” money — pounds, dollars, euros — the stuff we use to buy meal deals, pay for Spotify, and split Nando’s bills with our mates. It’s issued by governments and central banks, and fun fact: it’s not backed by gold, oil, or anything shiny anymore.
It has value because the government says so, and we all kind of nod and go, “Yeah, okay, sounds legit.”
It works well enough. Until it doesn’t — like when inflation creeps in and suddenly your £1.99 chicken burger is £3.50 and half the size. (Still tasty though, let’s be honest.)
And Bitcoin?
Bitcoin is that bold, independent digital currency that doesn’t trust authority, prefers decentralised systems, and probably listens to lo-fi beats while disrupting traditional finance.
There’s no central bank. No government printing more whenever things go south. Just maths, computers, and a maximum supply of 21 million Bitcoins — ever. That scarcity is what gives it value.
It’s kind of like digital gold… but without the hassle of storage or pirate raids.
Why should we care?
Honestly? Because money’s changing — fast.
We’re the generation that grew up topping up our Oyster cards, sending bank transfers for 82p, and investing £20 in crypto “just to see what happens.” And whether Bitcoin becomes the norm or just a cool side hustle for tech bros, it’s a major shift in how people think about value.
Here’s what’s real:
- Fiat is easy to use, accepted everywhere, but vulnerable to inflation.
- Bitcoin gives people more control, but it’s still not super practical for buying your Friday night takeaway.
But the bigger conversation here isn’t about choosing one or the other. It’s about understanding how money works, who controls it, and why people are looking for alternatives.
My take?
Fiat is the dad-joke of the money world — reliable, a bit outdated, but still pays the bills.
Bitcoin is the rebellious teenager with big dreams and a “don’t trust the system” hoodie.
Both have their place. And as students (aka certified broke philosophers), we’re in a great spot to explore both and actually think about how we want to handle money in the future.
Also, let’s be honest — if I ever try to pay for Morley’s in Bitcoin and they actually accept it, you’ll hear about it in the next blog post.
Till then, I’ll be over here trying to understand derivatives and why meal deals now cost £4.50.
– Tanvir
