[Fiat money](https://www.2minutebitcoin.org/blog/an-honest-account-of-fiat-money-2018 ) is the result of a social contract.
People give the state control over money, and the state uses it to manage the economy, redistribute wealth and fight crime.
- an excerpt from the 2-minute version of Unpacking Bitcoin's Social Contract (2018), originally posted in https://www.2minutebitcoin.org/blog/unpacking-bitcoins-social-contract-2018