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Money is made up in all cases. It's an abstraction of relative demand. Even if governments abandoned fiat money, they could still pull money from thin air. Mos
by dumbfoundded 7y ago
Money is made up in all cases. It's an abstraction of relative demand. Even if governments abandoned fiat money, they could still pull money from thin air.
Mostly because governments use violence to change the relative price of anything. If a government made owning a gold coin or a bitcoin a crime punishable by death, I think its buying power would go down. Similarly, by forcing citizens to pay taxes in a specified currency at the threat of jail time, a new currency is created.
It's made up all the way down.
- xiphias2 6y agoSure, money is a man made belief, Yuval Noah Harari's books are great at explaining this :) Generally gold confiscation doesn't mean the purchasing power going down, just transfering it to the governments. It's still quite scary though, as I wouldn't be surprised if it happened again :( The scariest thing is if all the countries in the world try to ban gold and Bitcoin at the same time to preserve the fiat system. I'm hopeful that as Schnorr signatures will make coinjoins more practical, it will be easier to use as well, thereby making ownership of Bitcoins less visible to governments. Wasabi wallet is great at doing coinjoins, but when I tried it, it was just too slow.