Bitcoin Terms Beginning with F
All Bitcoin transactions must pay a fee to be included in the blockchain. The fee is paid to the miners. The higher the fee, the faster the transaction will be confirmed. Fees are measured based on the data size of the transaction.
Face value, or nominal value, is the value of a financial instrument at its maturity date.
A Bitcoin faucet is a digital service that gives out bitcoin for free. Faucets were popular in the first few years of Bitcoin’s existence, when bitcoin was cheap and demand was relatively low. Today, faucets are exceedingly rare and give out small amounts of bitcoin.
The Federal Deposit Insurance Corporation is an independant agency created to supervise, insure, and preserve the reputation of legacy financial institutions.
The Federal Open Market Committee (FOMC) is part of the U.S. Federal Reserve System that engages in open market operations by setting monetary policy and establishing the federal funds rate.
The U.S. Federal Reserve System is the private central banking system that manages the money supply and regulates financial institutions; it was established in 1913 by the Federal Reserve Act.
Fiat currency is a form of money that lacks intrinsic value. This is the typical type of money used by a central government.
A fiduciary duty is a legal obligation to act in the best interest of another. A fiduciary owes a duty to its beneficiary.
The Financial Action Task Force (FATF) monitors the risk of international financial crime through a mutual evaluation process. The FATF assesses a country’s technical compliance and the effectiveness of that country’s frameworks to prevent money laundering and criminal financing.
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) is responsible for tracking suspicious financial conduct and deterring financial crime.
The Fisher Effect is an economic theory that describes the relationship between the real interest rate, nominal interest rate, and inflation.
Float is money that has been temporarily double-counted due to delays in money processing. Therefore, the money appears simultaneously in the accounts of the payer and the payee. Individuals and companies can benefit from using float.
Foreign exchange risk is a type of international financial transaction risk where parties may experience a disfavorable change in the purchasing power of one or both currencies during the investment period.
A fork is a change to a protocol or a piece of code. There are two types of forks: soft forks and hard forks.
A forward contract is a derivative which binds two parties to a transaction in the future. A forward contract is a customized exposure to the price of an underlying asset.
Fungibility is a property of goods which are interchangeable and indistinguishable. If a good is fungible, no instance of the good is preferable over any other.
A futures contract is a derivative which binds two parties to a transaction in the future. A futures contract is a tradable exposure to the price of an underlying asset.