No, they did not. They poorly explained their misunderstanding of currency and monetary policy.
Anon describes currency
Submitted 5 months ago by Zenoctate@lemmy.world to greentext@sh.itjust.works
https://lemmy.world/pictrs/image/94e59988-7ddf-429d-ae87-1dfa9d1cfaaf.jpeg
Comments
RowRowRowYourBot@sh.itjust.works 5 months ago
untakenusername@sh.itjust.works 5 months ago
I’m actually pissed Bitcoin is so deflationary because that incentives people to invest and hold it, and sure that causes the price to rise a ton, but it also lowers the pressure on people to sell it, making it less like a currency and more like an investment.
Satoshi low-key just wanted to be rich, otherwise there wouldn’t have been a cap on the number of Bitcoins that can exist
good thing there’s other currencies that actually don’t suck
Zenoctate@lemmy.world 5 months ago
I can’t believe that Dollar (or any other currency) isn’t backed by anything and runs on hopes and believes
Gladaed@feddit.org 5 months ago
That’s reductive.
It’s backed by the economic and militaristic might of the issuing country.
sugar_in_your_tea@sh.itjust.works 5 months 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.
Zenoctate@lemmy.world 5 months ago
Well I didn’t really gave much of a thought when writing. I was narrowminded. This makes sense
Alexstarfire@lemmy.world 5 months 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.
FireRetardant@lemmy.world 4 months 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.
Kolanaki@pawb.social 5 months ago
It used to be backed by gold until 1971.
DahGangalang@infosec.pub 5 months ago
And what was the gold backed by?
RowRowRowYourBot@sh.itjust.works 5 months ago
And moving away from backed currencies has increased economic stability.
BakerBagel@midwest.social 5 months 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.
anothercatgirl@lemmy.blahaj.zone 5 months 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.
chicken@lemmy.dbzer0.com 5 months ago
I think the other answers people are giving are wrong. It’s backed by debt and the enforcement of that debt.
lurch@sh.itjust.works 5 months ago
they used to back it with gold, didn’t they? gues nixon ran out while the printing press went brrrrr
RowRowRowYourBot@sh.itjust.works 5 months ago
The USD is backed by the American economy.
palmtrees2309@lemm.ee 5 months ago
lessthanluigi@lemmy.sdf.org 5 months ago
Stiffy Wilson lol
ryedaft@sh.itjust.works 5 months ago
You should read that Terry Pratchett book about money. Money? Printing Money? It explains pretty well why money exists and how it’s backed. And it’s funny.
NOT_RICK@lemmy.world 5 months ago
Painfully obvious “punchline”
Oka@sopuli.xyz 5 months ago
Not for me!