“As fiat money is credit, credit creation in a fiat currency results in the creation of new money, which means that lending is fiat’s antiquated and haphazard version of mining. Fiat miners are the financial institutions capable of generating fiat-based debt with guarantees from the government and/or central banks.

Unlike with bitcoin’s difficulty adjustment, fiat has no precise or engineered mechanisms for controlling issuance. Credit money, instead, causes constant cycles of expansion and contraction in the money supply, with devastating consequences.”

– The Fiat Standard
   By Saifedean Ammous