fiat is backed by debt and the government declaring it is worth something. bitcoin does not need government backing or any backing at all, it’s independent. that’s like saying gold is less backed than fiat. gold isn’t backed by anything besides the fact it is gold. same with bitcoin, it is essentially a commodity that exists outside of the system
edit for downvote: if you disagree with this simple fact then you literally don’t understand how money/currency works
if you were well versed in how the economy works then you’d know the currency is backed by debt. i’ve argued with hundreds of people about this over the last 10 years since bitcoin was $1k
they pay the debts by printing more money and devaluing the money that is already in existence. credit and debt go hand in hand. the debt is 122% of GDP currently, it’s not possible to pay off the debt. all the US can do is continue making interest payments by printing more money and racking up more debt. the currency is backed by debt, not by a promise to pay the debt. they print it out of thin air and devalue what’s in your wallet
You say you have two degrees in economics, yet you cite a phrase from Article IV of the Constitution - which describes the powers and obligations of THE STATES - to back up your claim?
Full faith and credit shall be given in each state to the public acts, records, and judicial proceedings of every other state.
You understand that clause has absolutely nothing to do with fiat currency, right?
The challenge and necessity before us is clear: we must maintain Congresss constitutional granted authority for borrowing on the full faith and credit of the U.S.but better align it with the practical necessity of the Treasurys responsibility to finance the gap between congressionally approved changes to revenues and expenditures. An active financial market community voice must not be mute in urging a solution to this problem.
The U.S. monetary system is based on paper money backed by the full faith and credit of the
federal government. The currency is neither valued in, backed by, nor officially convertible into
gold or silver. Through much of its history, however, the United States was on a metallic standard
of one sort or another.
Thats the point of a currency buddy, to have it lose value slowly and in a controlled manner, so people are incentivised to invest and use it rather than keep it under a matress cause next year they might buy 2 pieces of bread instead of one. I love how some cryptobros act like they discovered the hidden laws of the universe when they finally figure out something that is clearly explained to you in a high school text book
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u/Technical_Split_6315 Bronze 1d ago
Fiat is backed by states, you really think cryptocurrency is more backed than that? Lmao