4 ms·
Fiat currencies are created by sovereign entities which control fundamental things like land and people (they can even draft their population and send them into
by pavlov 4y ago
Fiat currencies are created by sovereign entities which control fundamental things like land and people (they can even draft their population and send them into war).
If you own land in the United States, you pay property tax in USD. That's just one of myriad ways that the dollar is backed by the physical assets of the nation.
- olalonde 4y agoTo many cryptocurrency enthusiasts, the fact that such an entity does not govern cryptocurrency is one of its main appeals. They're indeed different beasts but both lack an "intrinsic value": their value is entirely derived from the belief that they can be traded for something else eventually.
- danuker 4y agoIn Romania, the M3 monetary mass has gone up by at least 9% each year since 2016, while monetary velocity went down. Now that velocity is picking back up, we are seeing astronomical inflation. Just because a govenrnment controls the currency doesn't mean it's in your interest to save long-term in it.