Content What Is the Difference Between Fiat and Cryptocurrency? Main Differences Between Fiat Money and Commodity Money Other Measurements of the Money Supply It is essentially an ‘IOU’ created by the bank, with the ledger marking some figures in the customers account. By contrast, a sudden surge in the quantity of gold, silver, or other commodity would increase the money supply dramatically. Historically, this has caused sharp decreases in its value – meaning inflation has resulted. Fiat money is potentially a more stable form of money than commodities. This is because there is a steady supply provided by the central