[JumpCrisscross]

> transacting fiat currency generally costs a vendor ~3%

1. Bitcoin is no less a fiat currency than the U.S. dollar or Japanese yen.

2. For small retail transactions, yes, 3% seems right. Larger transactions, however, are generally done by wire. These transfers carry a fixed fee and are generally a very small percentage of the transaction value.

[speeder]

Fiat means value by decree, and value of bitcoin is decided only by free market, without any decrees

[bunderbunder]

> 1. Bitcoin is no less a fiat currency than the U.S. dollar or Japanese yen.

Depends on what you mean by "fiat currency", which tends to get used with a few different (if related) meanings. One is "non-backed state-issued currency". Under that definition it isn't. Another is "currency with no intrinsic value". Under that definition it is.