First of all, it's important to understand that Fiat10 doesn't have any relation with the index BTWTY. It's another index based on fiat money that can be use to analyse how fiat money is behaving against each other and against BTWTY itself.
The first logical step to understand what is the Fiat10 index and how it has been made is to start off by reading the Bit20 section. Once the composition of the Bit20 is made clear, you’ll realize that the Fiat 10 has been made by a similar process.
For the record, the bit20 index uses the top 20 cryptocurrencies ordered by market capitalisation. Every coin is weighted using the total market capitalization of the 20 coins put together. Then, to avoid giving too much weight to Bitcoin and other heavy coins, the biggest ones were capped to 10% weight in the index.
Fiat 10 is a basket, an index of the top 10 fiat money. We didn’t use market capitalization as we did with Bit20 but instead we measured the gross domestic product of each country to compose the index and the respective percentage of each currency (the weight) in the index.
Fiat currencies don't have as much volatility as cryptocurrencies and the big ones are the most stable ones. Therefore, there is no need to perform revisions nor to cap at 10% the biggest ones.
Just as we did with the Bit20, we use the value of an ounce of gold on the 21th of July 2015 to set a initial price to our Fait10 index, 1103.4733333333 USD.
Detailed composition of the index
|Country||Simbol||Gross domestic product in Billions $||Percentage in the index, in relation to the GDP||Price in USD on the 21/07/2015||Quantity of each currency||Value in USD of the curency in the Fiat10|
|Europe||EUR||15.0||26,22 %||1.09370||264,58 (EUR)||289,37 USD|
|USA||USD||15.0||26,22 %||1.00000||289,37 (USD)||289,37 USD|
|China||CNY||10.0||17,48 %||0.16105||1197,85 (CNY)||192,91 USD|
|Japan||JPY||5.00||8,74 %||0.00807||11950,04(JPY)||96,45 USD|
|UKGDP||GDP||2.70||4,72 %||1.55585||33,47 (GDP)||52,08 USD|
|Brazil||BRL||2.20||3,84 %||0.31479||134,82(BRL)||42,44 USD|
|Russia||RUB||2.10||3,67 %||0.017565||2306,40 (RUB)||40,51 USD|
|India||INR||1.90||3,32 %||0.015748||2327,51 (INR)||36,65 USD|
|Canada||CAD||1.8||3,14 %||0.77233||44,96 (CAD)||34,72 USD|
|Australia||AUD||1.5||2,62 %||0.74236||38,97 (AUD)||28,93 USD|
( No need for revisions. )