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RE: Modern Economics: Why Crypto Will Replace Fiat
Without a doubt; crypto will replace fiat. Gold and silver will likely have a role for a while too.
Without a doubt; crypto will replace fiat. Gold and silver will likely have a role for a while too.
Definitely. The one part fiat got right in the past was having a gold standard, and precious metals will always have a place as a means of transaction. I would love to see a crypto backed by a gold standard appear in future.
I've heard people say that the Gold standard caused the great depression. Look at Bitcoin. No one wants to sell it because of the limited supply.
You're right, the gold standard caused significant deflation over time, which contributed to the problem. I wouldn't say 'caused it' outright, but definitely contributed.
The gold standard is great if adhered to from the start of a currency. Even so, a gold standard only works when everybody believes in the overall fiscal and monetary responsibility of the ruling body, and the relative price of gold is fairly stable.
No, the credit bubble blown before the crash caused the crash. The subsequent 'correction' was prolonged into a 'depression' because of government meddling. In 1921, they let markets correct themselves; is was over in less than 1 year. In 1929, they did not follow this option.