this post was submitted on 08 Feb 2025
465 points (97.2% liked)
Curated Tumblr
4358 readers
218 users here now
For preserving the least toxic and most culturally relevant Tumblr heritage posts.
The best transcribed post each week will be pinned and receive a random bitmap of a trophy superimposed with the author's username and a personalized message. Here are some OCR tools to assist you in your endeavors:
-
FOSS Android Recs per u/[email protected]: 1 , 2
Don't be mean. I promise to do my best to judge that fairly.
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
To be fair, Economics is half imagination and magic. It’s why something like bitcoin could even become a thing.
One of the main things I learned during my economics degree is that money is fake.
Ehhh, not sure I'd go that far. Money, no matter what backs it, is just what people value it as. Just that when backed by real goods, e.g. gold, that it gives people a better reason to value it because the goods are worth something.
Mostly saying, money backed by a good have at least the value of the good itself. Which I would say makes money not fake.
When it's backed by belief, then it's fake.
But then said good only has as much value as we put on it. There's a tacit acceptance of what a group of people decided that good is worth. Its value is as real as we collectively decide it is; it's a construct
Yes, but things like gold have actual uses which give them at least some actual value. Fiat currency is backed 100% by belief.
Gold as a currency only has as much value as people assign to it. It's really no different than a fiat currency.
Fiat currencies are actually backed by the tax liabilities denominated in them. If you are liable for one of my business cards, else a guy with a gun shows up at your door, you suddenly have demand for my business cards.