The nation backing of fiat also is its downfall. Look at our monetary base [1] for an example. The US adjusted monetary base in in 1984 was about $183 billion.

The nation backing of fiat also is its downfall. Look at our monetary base [1] for an example. The US adjusted monetary base in in 1984 was about $183 billion. In the 24 years to 2008 it increased at a roughly linear rate to $874 billion. Just from 2008 to 2015 it increased to more than $4 trillion. The Fed themselves wrote an article [2] expressing some concern about the "nontraditional monetary policy" that instigated this sharp change in the monetary base. In their closing words, "Recent increases in the monetary base are far greater than any previously in American history (even adjusted for the size of the economy), surely a "noble experiment" in policymaking. Will these policies be successful without accelerating inflation? The epitaph to this curious case of monetary base expansion is yet to be written." And really I think that final line quite succinctly sums up the state of modern economics. We've entered into an age of currency growing, inflation chasing, debt drive economics. And it's been working great for the briefest glimpse of time that we've been carrying out this experiment. Does that mean we've finally 'solved' economics, or does an epitaph that looks back somewhat less fondly on our decisions await? I don't know, but I do think the inherent stability of the fundamentals of bitcoin (e.g. - everything except the exchange rate) and the lack of trust it requires makes it a nice balance to our fiat experiments. [1] - https://fred.stlouisfed.org/series/BASE https://fred.stlouisfed.org/series/BASE [2] - https://www.stlouisfed.org/Publications/Regional-Economist/July-2009/The-Curious-Case-of-the-US-Monetary-Base https://www.stlouisfed.org/Publications/Regional-Economist/J...