Quote from: CryptoDomains on September 12, 2014, 06:24:35 PM

Quote from: taltamir on September 12, 2014, 12:35:13 PM

Quote from: CryptoDomains on September 12, 2014, 11:35:08 AM

One thing I have always struggled to understand is how a government like the US does away with fiat.

Notes can be 100% backed by a hard currency instead of by government fiat.
Fiat literally means "because I said so"
Furthermore, you could just have coins worth actual money (aka, silver coins).
And the ubiquity of credit cards in modern society means that it is actually possible to completely replace a cash business with a credit card business. you even have a credit card based vending machines

You missed my point, how can the US or most countries do away with fiat..BECAUSE and this is fact, they MUST have a cash business society/blackmarket etc in order to have an economy at all.

If tomorrow a law was passed and only digital money tracked and supplied by the gov was issued it would destroy the economy. We must still have literal CASH or the world she no turn round.

I didn't miss your point, I EXPLICITLY answered it
1. Fiat has nothing to do with cash (most fiat is electronic money, and cash coins and paper can be fiat or precious metal based.)
2. Your assertion that the economy MUST have Paper cash or it will collapse is false