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> can't get past the idea that a currency needs to be backed by a state to be a real currency. That's the most ridiculous claim ever...currencies existed long b
by mpyne 12y ago
> can't get past the idea that a currency needs to be backed by a state to be a real currency. That's the most ridiculous claim ever...currencies existed long before nation-states ever did.
I think if you examine those economists' arguments further, you'll see it doesn't have as much to do with "OMG where's the state???!" as you seem to think.
As you yourself point out, economies have worked since long before nation-states have existed, so maybe the Bitcoin evangelists might want to recognize that being "like gold but with bits" doesn't change all the economic rules.
- shit_parade 12y agoNixon took the US off the gold standard, fiat currency controlled by central banks is the real new experiment.
- mpyne 12y agoFDR took the larger U.S. international economy off the gold standard in 1933, so if "bank-controlled fiat" isn't exactly "new". And even that is a highly American-centric POV; other economies have worked on bank controls and fiat long before the U.S. even existed, including China in the 11th century and England starting from the 12th century.