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This has important limitations on the liquidity of your "wealth". Let's say that you've created $1 quadrillion worth of meat. You want to convert this into alte
by timwiseman 17y ago
This has important limitations on the liquidity of your "wealth". Let's say that you've created $1 quadrillion worth of meat. You want to convert this into alternative forms of wealth such as currency and medical supplies. However, is it at all likely that you will be able to convert all this wealth before it expires? Nope. And this is one of the most important distinctions between wealth and currency.
Yes, assuming you didn't try to hoarde the currency. You would sell it in large portions, buying what you needed with other things in the process. There is only a problem if you want to actually hold $1 quadrillion in currency, not at all if you want to hold $1 quadrillion in value.
The supply of currency is artificially limited by the government, while the supply of wealth is an arbitrary measure that people decide to assign their work and belongings.
Fiat currency must, by definition, be artificially limited by the government. It is created by governments and given value only because they assign it value (largely through accepting it in payment for taxes). Nonfiat currency such as gold bullion or else paper money issued back by gold is limited by the available supply of whatever commodity is being used. I believe, though I've never verified, that all currencies in major use today are fiat.