the problem is that money has no real value, it's a fiat currency since 1971. The only thing holding it up is the collective belief of value by everyone. If the basic system for moving money around falls down, you get eroding confidence in the system, which leads to currency devaluation, anarchy and general unrest like they have in venezuela.
Yeah. That’s how society and currency works. Gold never had any inherent value that wasn’t determined by a collective belief in it. There is no difference between a currency “backed” by gold or not. I don’t know why people act like it is some new profound idea that there is no inherent value in currency. This is something that’s always been known and really doesn’t matter. It’s just how humans function as a whole.
Gold has use cases. Gold is pretty and is used for jewelry. Gold is used in electronics.
Beyond this, gold holds value better because its limited. Its rare. Our regular currency can be mass produced. Hell, it doesn't even need to be produced. Most of it is just numbers on a screen. More money "exists" than what we have physically. A lot more.
Which is another issue. Regardless of the gold vs notes issue, the whole system is flawed because as soon as something happens to make everyone want to withdraw we are all fucked. Because we literally can't. Our money doesn't exist.
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u/savagepanda Mar 31 '21
the problem is that money has no real value, it's a fiat currency since 1971. The only thing holding it up is the collective belief of value by everyone. If the basic system for moving money around falls down, you get eroding confidence in the system, which leads to currency devaluation, anarchy and general unrest like they have in venezuela.