RE: Money Worth Nothing

[joanstewart]

Digital money was not developed to be held as a national currency, read about Venezuela launching Petro in February 2018.

Idea is to be able to cross borders, hold a better value (not being central bank controlled), transact cheaper, be international where checks and balances are spread throughout the world to keep the blockchain information (miners) working throughout the world, safety and security became the next feature that is being investigated, worked on.

Relying solely on local fiat has become a nightmare with governments and bankers printing more paper money to try hold onto runaway hyperinflation, committing country into poverty.

Sorry I do not agree with you, moving forward into the 21 century financial instruments need to change, digital money on blockchain technology if done correctly should work worldwide within the next ten years. This is my opinion @cloudblade each to his own.

Comments

[cloudblade]

The state and the bank print the banknotes, but he does not have enough gold to guarantee. Those banknotes are in the eyes of everyone. He is only the government in the set of money. If it is a good government, it is naturally no problem, but when the government is weak, it does not provide Enough gold to guarantee, how to trust it?
The same reason...
The issuer of the crypto currency, almost no gold is provided as a collateral, but the risk is dispersed in the hands of the holder, relying on confidence, when the holder has confidence in this crypto currency, it can Use, when the holder has no confidence in this crypto currency, it becomes a waste coin...
However, at present, there are organizations that have advocated that the crypto currency they issue will provide valuable assets!
crypto currency has been used for shopping for more than a few years. The reason why it cannot be widely used is that its value lies in the confidence of the holder, so the fluctuation is too large, many businesses can not afford its fluctuation, so it is impossible to accept the secret currency. Payment to shop.
The crypto currency is at the mercy of the confidence of global holders.
The nationally printed banknotes are at the mercy of their own national strength.
When the national strength is strong, the secret currency is not applicable.
When the national strength is weak, the crypto currency is very applicable.
For example, the US dollar is more useful than the crypto currency, and the crypto currency is more useful than some currency of small countries.

[joanstewart]

Fiat currency (paper) and digital money (FinTech) both on a trust factor in value, supply/demand. No fiat currency is backed by gold!

While various countries have adapted their currency’s backings over the centuries, the British Gold Standard was one of the most notable examples of backing currency with hard assets. Gold has spurred exploration in the 16th century, and helped standardize world trade when it boomed in the 19th century.

Along the way, governments introduced paper money to make life more convenient. Carrying about metal became frustrating, and the easy solution was to issue little slips of paper. In practice, paper itself is worth nothing; a $1 coupon for McDonald’s is only worth $1 if McDonald’s is willing to honor it. And for that reason governments backed their paper money with gold, merely allowing the paper for convenience but with the full backing of a hard asset.

Sadly, things change. In 1971, the United States closed the “Gold Redemption Window” and ended the practice of issuing sound money, instead deciding to join the ranks of most other nations that shifted to purely “fiat currency” with no value other than what is implied.

If you’re reading this, you no doubt have a sneaking suspicion that keeping your money as a ledger line on internet banking, or even as cold hard cash in your home safe, isn’t the best thing for your money. Ever since going off the Gold Standard, the US dollar has declined in value each year. In fact, the dollar has lost about 90% of its value since going off the Gold Standard.

Source

We are at the mercy of governments, bankers locally, or looking after your own digital money doing research and investing wisely. We are all in the same situation, any fiat currency can go down the tubes at any given time.