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The value of fiat money is maintained by the issuer though. How does this happen? The Government demands payments of tax etc in this issued money. Means you nee
by burntbridge 5y ago
The value of fiat money is maintained by the issuer though. How does this happen? The Government demands payments of tax etc in this issued money. Means you need to have this funny money otherwise you go to jail. After a while we also get used to it as "an accepted means of exchange". But the value of course will quickly evaporate if the authority of the Government goes.
- lottin 5y agoThe ability to pay taxes with a currency is indeed one of the reasons people will demand that currency, but this doesn't mean its value is maintained by the government. History has shown repeatedly that a currency's value can collapse while people are still required to pay taxes with it.