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> The only difference between fiat and crypto is that fiat is often backed by people that can print more money/manage the supply This is really not the only di
by Finbarr 5y ago
> The only difference between fiat and crypto is that fiat is often backed by people that can print more money/manage the supply
This is really not the only difference. As Elon Musk recently said, the government has a "monopoly on violence" and acts as an authority that arbitrates disputes (up to and including between countries), works to ensure proper controls and regulations through laws, etc., all of which helps to underpin the value of the currency. Cryptocurrencies are backed by no central authority with these powers.
- dmoy 5y agoNote that "monopoly on violence" theory predates musk saying it by about 100 years
- joebob42 5y agoIt's true, although the fact that musk personally said it is still relevant in the sense that he is for whatever reason a major mouthpiece in the crypto space that some people seem to respect.
- Emma_Goldman 5y agoIn substance, it goes back to the original philosophers of the modern state: Jean Bodin and Thomas Hobbes. That was in the 16th and 17th century. Also important is that the state has a monopoly on legitimate violence. It has social license by virtue of exercising violence to uphold social order. In the case of the economy that means its macroeconomic management to ensure stability and the public good. Clearly crypto woefully fails by that standard.