The OP mentions the use of Bank notes in England during the 16th century. Um, the Chinese introduced the concept much much earlier during the 7th century. Ref the
Wikipedia article on Fiat Money.
Time and time again in that article it mentions things such as
One justification for fiat money comes from a micro-founded model. In most economic models, agents are intrinsically happier when they have more money. In a model by Lagos and Wright, fiat money doesn't have an intrinsic worth but agents get more of the goods they want when they trade assuming fiat money is valuable. Fiat money's value is created internally by the community and, at equilibrium, makes otherwise infeasible trades possible.
Note that last sentence, "Fiat money's
value is created internally by the community and, at equilibrium, makes otherwise infeasible trades possible". To me that sure sounds exactly the same as what gives crypto value.
So, that gives us:
"Original or real money" - a physical thing be it precious metals, beaver pelts, silk, a barrel of oil, etc. that can be traded for goods and services.
"Historical Fiat" - a physical thing such a paper script/receipt produced by a trustworthy source that can later be converted into real money.
"Modern Fiat" - a physical thing (paper money) that has assigned value but the value is
not tied to or convertible to a physical thing but is instead assigned value based on world-wide consensus.
Lastly, what I would call Crypto Fiat - crypto currency that has value but said value is again not tied to a physical thing.
In other words, Bitcoin and all the other crypto coins
technically ARE Fiat!