Post
Topic
Board Economics
Re: Fiat Currency Always Fails
by
Argoo
on 30/10/2018, 17:45:09 UTC
See:

There Is No Escaping History.  Fiat Currency Eventually Fails.

Notice that this is a critique of fiat money -- not a critique of state-issued money under a gold/silver or other standard.  Fiat money is a rare occurrence in modern history.  (We live in strange times!)  As we can see, the examples found by the author are a small number of short periods here and there.

I have my own critique of gold/silver standards, but that's another issue.
With the advent of cryptocurrency, its supporters very often declare that the cryptocurrency will replace the national money of the states. This statement is completely erroneous, since it contradicts the basic laws of economic development. The main reason why the cryptocurrency is not able to replace fiat with itself is that fiat interacts directly with the economy of the state, and the cryptocurrency can in no way be connected with the economy of any state. Therefore, the cryptocurrency can go in any state only simultaneously with the national money of this state.