There is no physical BTC token so you can think of Bitcoin as digital money. Bitcoin transactions are fully transparent and can’t be censored. You can send money to anyone in the world with ease. It’s a financial system backed by thousands of computers around the world, instead of a single central bank or government. “Fiat money," on the other hand is legal money issued by a state authority without intrinsic internal value. It serves as a medium of exchange and is the opposite of commodity money like silver or gold.