Fiat money has a difference: an army. It is issued by a government which has the legitimate right to demand taxes, paid in their currency, and deprive you of life and liberty if you don't.
Ultimately the populace could repudiate the whole social contract, which is also just consensus, but that's a far bigger deal than mere money.
The true value of (fiat) money is derived from the fact that contracts are denominated in that money and those contracts are enforced by a central authority with guns. No other assumption is needed in financial engineering.
Unless they didn’t.
There’s nothing inherently valuable about crypto beyond what value people assign to it in their minds.
Same with all money. Please research more before parroting this argument. You are not the first person to think of it.
Fiat money has a difference: an army. It is issued by a government which has the legitimate right to demand taxes, paid in their currency, and deprive you of life and liberty if you don't.
Ultimately the populace could repudiate the whole social contract, which is also just consensus, but that's a far bigger deal than mere money.
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The true value of (fiat) money is derived from the fact that contracts are denominated in that money and those contracts are enforced by a central authority with guns. No other assumption is needed in financial engineering.
GP was arguing against GGP’s point and I was simply pointing out that the argument was hollow.
What are you referring to with “research more”?
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It's always hilarious when people who are unclear on the basics themselves tell other to "research more". I suppose it's the Dunning-Kruger Effect.
False. Gold and silver have intrinsic value beyond their use as currency.
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