4 ms·

Sovereign currencies are backed by military force. Gold has some intrinsic value but is more similar to Bitcoin.

ricochet11 4y ago
many of us choose crypto for this reason, it isnt backed by military force. it is backed by the work and collaboration and agreement of people all over the world.
- tablespoon 4y ago
  >> Sovereign currencies are backed by military force. > many of us choose crypto for this reason, it isnt backed by military force. it is backed by the work and collaboration and agreement of people all over the world. You're missing the point. It's not about aesthetics.
  - ricochet11 4y ago
    I strongly believe that ideas like culture, democracy, collaboration, opensource tech, and "doing the work" are stronger and more powerful forces than military enforcement. i dont think that for aesthetic reasons. It IS more robust, there is a better chance of survival.
notahacker 4y ago
Sovereign currency isn't really backed by military force so much as it's backed by trillions of $currency being owed in taxes or repayments over a given time period, meaning that obtaining currency has value to individuals and companies with outstanding debt and they're willing to swap goods and services for it. The military force is useful only in the narrow sense that being attacked by neighbours tends to damage the ability to perform services and repay debts and collect taxes, and many nations have perfectly adequate currencies but limited ability to project military power. (And FWIW cryptocurrencies now have some debt repayable in them which helps stabilise their price somewhat, but the markets are relatively thin and short term, and the companies taking on crypto repayment obligations are generally trying to obtain the crypto by swapping for other volatile tokens in a zero-sum bet rather than borrowing to produce real world goods and services to trade or securing their debts against valuable real estate)
- eldenwrong 4y ago
  It is backed by force. How do you think you collect debts when people don't want to pay?
  - notahacker 4y ago
    Generally they send a payment demand by registered mail or maybe a bailiff or two, not a tank division. The military is useful to ensure property in general is still a thing (including ensuring people aren't rounded up and tortured by enemy soldiers hunting their crypto keys) but doesn't play much role in ensuring that people sell their labour to meet mortgage repayments.
    - eldenwrong 4y ago
      And how do countries ensure debts get repayed when one doesn't want to pay?
      - notahacker 4y ago
        I feel like I'm repeating myself, but generally they send a payment demand by registered mail or maybe a bailiff or two, not a tank division. Debt repayment is enforced by exactly the same rule of law and exactly the same law enforcement as the property ownership of anyone else, including cryptofantasists.
        eldenwrong 4y ago
        You are because you are doubling down on being wrong. Tax collection is backed by force. Try not paying your taxes and see what happens
- cmpxchg8b 4y ago
  Try not paying your taxes to find out how much force the state has.

many of us choose crypto for this reason, it isnt backed by military force. it is backed by the work and collaboration and agreement of people all over the world.

tablespoon 4y ago
>> Sovereign currencies are backed by military force. > many of us choose crypto for this reason, it isnt backed by military force. it is backed by the work and collaboration and agreement of people all over the world. You're missing the point. It's not about aesthetics.
- ricochet11 4y ago
  I strongly believe that ideas like culture, democracy, collaboration, opensource tech, and "doing the work" are stronger and more powerful forces than military enforcement. i dont think that for aesthetic reasons. It IS more robust, there is a better chance of survival.

notahacker 4y ago

Sovereign currency isn't really backed by military force so much as it's backed by trillions of $currency being owed in taxes or repayments over a given time period, meaning that obtaining currency has value to individuals and companies with outstanding debt and they're willing to swap goods and services for it. The military force is useful only in the narrow sense that being attacked by neighbours tends to damage the ability to perform services and repay debts and collect taxes, and many nations have perfectly adequate currencies but limited ability to project military power. (And FWIW cryptocurrencies now have some debt repayable in them which helps stabilise their price somewhat, but the markets are relatively thin and short term, and the companies taking on crypto repayment obligations are generally trying to obtain the crypto by swapping for other volatile tokens in a zero-sum bet rather than borrowing to produce real world goods and services to trade or securing their debts against valuable real estate)

eldenwrong 4y ago
It is backed by force. How do you think you collect debts when people don't want to pay?
- notahacker 4y ago
  Generally they send a payment demand by registered mail or maybe a bailiff or two, not a tank division. The military is useful to ensure property in general is still a thing (including ensuring people aren't rounded up and tortured by enemy soldiers hunting their crypto keys) but doesn't play much role in ensuring that people sell their labour to meet mortgage repayments.
  - eldenwrong 4y ago
    And how do countries ensure debts get repayed when one doesn't want to pay?
    - notahacker 4y ago
      I feel like I'm repeating myself, but generally they send a payment demand by registered mail or maybe a bailiff or two, not a tank division. Debt repayment is enforced by exactly the same rule of law and exactly the same law enforcement as the property ownership of anyone else, including cryptofantasists.
      - eldenwrong 4y ago
        You are because you are doubling down on being wrong. Tax collection is backed by force. Try not paying your taxes and see what happens
cmpxchg8b 4y ago
Try not paying your taxes to find out how much force the state has.