Is Bitcoins a Fiat or a commodity? Fiat money is money that is a legal claim as it attains all its properties from the law. It is just like a purchase voucher that can be used as an exchange for goods and services and its purchasing power varies. Commodity money, on the other hand, is money that derives its value from a commodity of which it is made. Bitcoins is a digital value of money and even though the value is not physical it is in some sense a value of money. Bitcoins are commodity money due to the fact that the value of it is not governed by the law just yet and even though its not physical it holds a true value to money. Bitcoins are used to goods and services through trade or buying which is exactly what commodity money is used for.