I thought fiat was backed by Precious metals and gems. But if the entire fiat in circulation is above the amount of gold, silver and other precious metals then what is it backed by?
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I thought fiat was backed by Precious metals and gems. But if the entire fiat in circulation is above the amount of gold, silver and other precious metals then what is it backed by?
Fiat money is backed by nothing. Nothing but the belief that the users have in it, and the faith that others will continue to believe in its false "value."
Throughout history, all reserve currencies have lasted only a short while.
And all fiat currencies will revert to their true value of zero.
Posted via Steemleo