Post
Topic
Board Economics
Re: Proof of Stake from an austrian school perspective
by
DanielT
on 29/01/2015, 16:55:40 UTC
Fiat money started out in another way: it started out as a "proof of holding gold or silver" or was "backed" in some or other way.  But now, fiat money stands on itself, as a state-issued token, printed on paper, or even just acknowledged in a computer account.

You are forced to pay taxes in fiat. USA (and other countries) have a powerful army they use to back fiat. States offers financial titles and other stuff. Fiat is backed by many ways.

My point is that a monetary asset is just an asset of which enough people think it is a monetary item.  How that collective belief is established, is in fact somewhat irrelevant.

This is problematic, as you are merely creating a ponzi scheme.