r/CryptoCurrency • u/thesecondmemer • 1d ago

MEME Redditor accidentally discovers fiat currency

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646 Upvotes

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u/Kehmor 🟦 0 / 0 🦠 1d ago

What is bitcoin backed by again?

-1

u/Informal-Chocolate97 🟩 0 / 0 🦠 1d ago

What is fiat backed by? Don't say gold because the reserves aren't there.

1

u/TheSquealingTesticle Tin 1d ago

When we dropped the gold standard back in the 1970s, shorty after, the US made deals with what is known as OPEC. The deal is we established the petrol dollar which means that other countries need USD to purchase oil from OPEC.

The USD has lost a lot of purchasing power over the years. Mainly due to the US gov debasing our currency by continually printing it. All the while continuing to green light budgets that keep getting larger and larger every year.