Fiat Money

Fiat money is a government-issued currency that is not backed by a commodity such as gold

investopedia.com

Who creates FIAT MONEY?

The central bank creates only a small fraction of the money inside the economy of a country. Most of it is created by commercial banks by giving loans.

(source: https://youtu.be/KvpbQlQwl0A)

Reserve requirements

Reserve requirements are central bank regulations that set the minimum amount that a commercial bank must hold in liquid assets (i.e. cash, bonds etc.)

(source: Wikipedia)

Who pays the Bill if a bank goes bankrupt?

(source: ING)

Single-entry accounting

(source: https://www.beginner-bookkeeping.com/single-entry-bookkeeping.html)

Double-entry accounting

(source: https://medium.com/@spathion/triple-entry-accounting-one-of-the-greatest-inventions-in-the-last-few-centuries-in-the-world-of-42570e5cb058)

Luca Pacioli invented double-entry accounting around 1494

Triple-entry accounting

(source: https://medium.com/@permabullnino/bitcoin-an-accounting-revolution-40efcb903d7b)

Bitcoin is a triple-entry Accounting System

Game Theory

Game theory is a theoretical framework to conceive social situations among competing players.

(source: investopedia.com)

Prisoner's Dillema

(source: LumenLearning)

Bitcoin Miners are the players

(source: reuters.com)

If miners start cheating, everyone will see and the cryptocurrency will lose its value. If that happens the miners will stop mining as it won't be profitable for them anymore