Anon describes currency

Comments

• NOT_RICK@lemmy.world ⁨3⁩ ⁨weeks⁩ ago

  Painfully obvious “punchline”

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  • Oka@sopuli.xyz ⁨3⁩ ⁨weeks⁩ ago

    Not for me!

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• RowRowRowYourBot@sh.itjust.works ⁨3⁩ ⁨weeks⁩ ago

  No, they did not. They poorly explained their misunderstanding of currency and monetary policy.

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• untakenusername@sh.itjust.works ⁨3⁩ ⁨weeks⁩ 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

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• Zenoctate@lemmy.world ⁨3⁩ ⁨weeks⁩ ago

  I can’t believe that Dollar (or any other currency) isn’t backed by anything and runs on hopes and believes

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  • Gladaed@feddit.org ⁨3⁩ ⁨weeks⁩ ago

    That’s reductive.

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

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  • 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.

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    • Zenoctate@lemmy.world ⁨3⁩ ⁨weeks⁩ ago

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

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  • 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.

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    • FireRetardant@lemmy.world ⁨11⁩ ⁨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.

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  • Kolanaki@pawb.social ⁨3⁩ ⁨weeks⁩ ago

    It used to be backed by gold until 1971.

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    • DahGangalang@infosec.pub ⁨3⁩ ⁨weeks⁩ ago

      And what was the gold backed by?

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    • RowRowRowYourBot@sh.itjust.works ⁨3⁩ ⁨weeks⁩ ago

      And moving away from backed currencies has increased economic stability.

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    • 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.

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  • 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.

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  • 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.

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  • 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

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  • RowRowRowYourBot@sh.itjust.works ⁨3⁩ ⁨weeks⁩ ago

    The USD is backed by the American economy.

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• palmtrees2309@lemm.ee ⁨3⁩ ⁨weeks⁩ ago

  Woodrow Wilson hate day.

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  • lessthanluigi@lemmy.sdf.org ⁨3⁩ ⁨weeks⁩ ago

    Stiffy Wilson lol

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• ryedaft@sh.itjust.works ⁨3⁩ ⁨weeks⁩ 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.

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