In 1971, the US dollar went off the gold standard – it ceased to be redeemable in precious metal. From that date on, it existed as a promise only – a promise from a government.
Gold is the currency of kings, silver is the money of gentlemen, barter is the money of peasants, but debt is the money of slaves.
Money, it must have intrinsic value – independent of any other object and contained in the money itself
The great majority of what passes for money today is digital, although, for daily use, paper currency is still widely used. But it must be said that paper currency is also fiat, having a far lower intrinsic value than the denomination printed on it.
Cryptos have distinct advantages over other fiat currencies – they allow quick transactions between parties anywhere in the world, independent of any reliance on banks or governments. Unfortunately, though, they have, in fact, even less inherent value than paper currency
Cryptos inherent value is zero. They only have perceived value.
Throughout history, whenever the perceived value of a form of fiat currency has collapsed, the currency has returned instantly to its intrinsic value.
Similarly, Bitcoin, regardless of the fact that it’s always pictured as a gold coin, is actually an algorithm. It’s been promised to be “finite” – to be capped at 21 million. However, this is, once again a “promise.”
The acceptance of a currency as real money only exists as long as confidence allows it to. Once that confidence has failed, it’s very difficult to sell anyone on the idea of accepting it again!
Ps. If I hurt your feelings to bad4728C23E00000578-5163245-image-a-12_1512852801815.jpg