vineri, 15 iunie 2018

What is really backing fiat money

The critics of fiat money and supporters of bitcoin and other cryptocurrencies are saying that the government printed money have value because we agree upon it. At first sight it seems true, but the fiat money cannot have the value 0 as the cryptocurrencies can have because, there will be always a demand for fiat money from government.
The government demands that the taxes to be payed in current currency, if you don't pay your taxes your good will be seized and sold, and if you opposed you be arrested, if you opposed you can be shot.
So fiat money are supported in fact by the barrel of the gun.

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