How did paper money (Fiat Money) come to be?
Introduction to Centralization and the Fiat System
Introduction to Centralization and the Fiat System
Is the money we hold just pieces of paper? 💸📜
Is the money we hold just pieces of paper?
Since gold was heavy to carry, people began depositing their gold in banks and used "deposit certificates" (IOUs) as a substitute. Those certificates were the very beginning of modern "Banknotes."
Gold was heavy to carry, so people deposited their gold in banks and used "deposit certificates" (IOUs) as a substitute. Those certificates were the very beginning of modern "Banknotes."
Until 1971, every dollar was backed by real gold. However, after 1971, nations across the world abandoned the "Gold Standard" and shifted to Fiat Money—a monetary system where currency is issued by government decree.
Until 1971, every dollar was backed by real gold. However, after 1971, nations across the world abandoned the "Gold Standard" and shifted to Fiat Money—a monetary system where currency is issued by government decree.
This means... the value of modern money relies entirely on "Trust" in the government. So, what happens if the government prints too much money? 📉
This means... the value of modern money relies entirely on "Trust" in the government. What happens if the government prints too much money?
Let's discuss this tomorrow.
Let's discuss this tomorrow.
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