3 ms·
USD is fiat money. It's value is only as good as people's faith in the US government. Commodity money still has worth from what it's made from (e.g. gold) even
by ourmandave 8y ago
USD is fiat money. It's value is only as good as people's faith in the US government.
Commodity money still has worth from what it's made from (e.g. gold) even if it's no longer used as money.
I'm not sure what Ethereum is.
- vkou 8y agoUSD's value is only as good as the US government demanding that its citizens pay it ~3 trillion dollars by April of next year. I, and the rest of the world have pretty good faith that this will happen in April 2019, and pretty good faith that it will also happen in April 2020. I have pretty good faith that if it will not happen in April 2021, I'm more likely to be scavenging for bottle caps, canned beans, and ammunition[1], then I am to be be using eth. [1] Actually, it's more likely I'd be dead, but the point would still stand.
- ourmandave 8y agoPoint taken. I too would be one of the first casualties as I try to pay for my plane ticket to Canada with Ethereum. Hmmm... I wonder what would happen if everyone tried to pay their taxes with Ethereum?
- vkou 8y agoThe same thing that would happen if everyone tried to pay your taxes with turnips, of if "What if they started a war, but nobody came?" The government would, quickly, and decisively increase punishments for non-compliance, print or borrow a wagon-full of money to make payroll, and send the police, and army in.
- Dylan16807 8y agoNah. If everyone is demanding it then the laws can be updated. If you had just 10% of the population loudly demanding such a payment method, and 90% generally ambivalent, you could probably make it happen.
- brokensegue 8y agothe price of eth would plummet as people trying to convert eth to dollars for tax day (because you can't pay your taxes in eth at all)
- nradov 8y agoThe US government can back the USD with naked force. No faith is required.