Comment on Anon describes currency

Zenoctate@lemmy.world ⁨3⁩ ⁨weeks⁩ ago

• Gladaed@feddit.org ⁨3⁩ ⁨weeks⁩ ago

  That’s reductive.

  It’s backed by the economic and militaristic might of the issuing country.

  source
• sugar_in_your_tea@sh.itjust.works ⁨3⁩ ⁨weeks⁩ ago

  That’s… not how that works. It runs on supply and demand, just like gold backed currency, but it’s supply and demand for the currency instead of the underlying asset. If you want to control inflation/deflation, fiat is the way.

  source

  • Zenoctate@lemmy.world ⁨3⁩ ⁨weeks⁩ ago

    Well I didn’t really gave much of a thought when writing. I was narrowminded. This makes sense

    source
• Alexstarfire@lemmy.world ⁨3⁩ ⁨weeks⁩ ago

  Anything is only worth as much as someone else wants it. Everything comes down to supply and demand. Currency is just a medium so you don’t have to trade fish for lumber in order to trade the lumber for some bacon. Also, pretty convenient to be paid in currency instead of fish, lumber, or bacon. You can use it to directly buy/get what you want.

  If no wants to buy or sell the currency then it’s a pretty worthless currency. That’s why you can’t just crate your own currency and buy things with Bob’s Bucks.

  source

  • FireRetardant@lemmy.world ⁨20⁩ ⁨hours⁩ ago

    This is why Ricky had it right with his hashcoins. He could treat them as currency and exchange them for goods, the other party could then do the same using it as a currency, or just smoke the hashcoin as if it were a good.

    source
• Kolanaki@pawb.social ⁨3⁩ ⁨weeks⁩ ago

  It used to be backed by gold until 1971.

  source

  • DahGangalang@infosec.pub ⁨3⁩ ⁨weeks⁩ ago

    And what was the gold backed by?

    source

    • untakenusername@sh.itjust.works ⁨3⁩ ⁨weeks⁩ ago

      being deflationary I think

      source
    • Kolanaki@pawb.social ⁨3⁩ ⁨weeks⁩ ago

      Greed.

      source
  • RowRowRowYourBot@sh.itjust.works ⁨3⁩ ⁨weeks⁩ ago

    And moving away from backed currencies has increased economic stability.

    source
  • BakerBagel@midwest.social ⁨3⁩ ⁨weeks⁩ ago

    Only officially. The US effectivly dropped the gold standard in 1933 because it was making the Great Depression worse. Money was completely stagnant, and the federal worl projects FDR championed to get the economy moving again couldn’t be funded when the government couldn’t get access to more gold.

    source
• anothercatgirl@lemmy.blahaj.zone ⁨3⁩ ⁨weeks⁩ ago

  Currencies often run on tax law. If you earned and produced and imported valuable goods or services, you have to pay tax in your local country’s currency.

  source
• chicken@lemmy.dbzer0.com ⁨3⁩ ⁨weeks⁩ ago

  I think the other answers people are giving are wrong. It’s backed by debt and the enforcement of that debt.

  source
• lurch@sh.itjust.works ⁨3⁩ ⁨weeks⁩ ago

  they used to back it with gold, didn’t they? gues nixon ran out while the printing press went brrrrr

  source
• RowRowRowYourBot@sh.itjust.works ⁨3⁩ ⁨weeks⁩ ago

  The USD is backed by the American economy.

  source