The Corral: Gold and Fiat Currencies

Money is a consensual myth. We currently have fiat money – money that is ultimately imaginary and only worth something because a government says it is, and people believe it and choose to treat it as if the money were real. And people work this out and think it’s ridiculous (it is). And that because it can print more money the government can devalue your savings (if your savings are in a sock under the bed it can; a house remains a house and a company a company regardless).

They then jump from there to one of a number of solutions – normally the Gold Standard, but there are other functionally indistinguishable ones including the Silver Standard, a price-fix based on a basket of commodities, and Bitcoin. And they all have the same flaws as fiat currency – you can’t eat them or take shelter under them and are only worth what people think they are. But rather than having a potential for the government printing more and thus reducing savings, they all suffer from the same thing. The Scrooge McDuck tax on everyone’s work.
Scrooge McDuck jumping into a pile of money

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