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.
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.
Fiat currency is a form of money that lacks intrinsic value. This is the typical type of money used by a central government.
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.