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59 sats \ 7 replies \ @kepford OP 8h \ parent \ on: Which is Worse: Taxes or Fiat Money? econ
Fiat is not the dollar.
The dollar was once pegged to gold.
I didn't say the dollar. I said Fiat.
Guess I should have been more clear. Common confusion.
Additionally, you could eliminate the FED and NOT eliminate the Treasury. Coining money is not fiat.
See most people have no clue about how the dollar works. I'd say most bitcoiners don't. And I'm not an expert in the slightest. But the many hours I've spend learning about the history of the US money system and economy I know that we once had a non-fiat system here.
Banks issued notes. Dollars are just notes issued by the treasury and were backed by gold. Of course there is trust involved but its entirely different from fiat.
Today since bitcoin exists and doesn't require trust (other than in the protocol / network) we could and likely would eliminate the dollar.
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Coining money wouldn't be fiat if the denominations matched the value of materials used.
Pennies and nickels are worth more than their face values, but dimes and quarters much less. Dimes and quarters are fiat because their value comes from government decree.
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Sure. But again, you are describing fiat and mixing that with the coinage. It would be fiat if the coins were traded for arbitrary set amounts. Unless they were treated like paper notes. IE, backed by a physical asset. After all, even paper has a value. Its just very small.
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The bank notes were not totally backed by gold.
Fractional reserve banking existed during the gold standard too
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I get you, but I think fiat currencies would fail much faster without taxing authority behind them.
Part of the demand for fiat is that people have to pay their taxes in it and a lot of the willingness to buy the bonds that are part of creating more fiat is knowing theft can be used to guarantee the nominal yield.
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Maybe. I can see that being possible.
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The root of the problem is government spending which can only be minimized by minimizing taxation of all kinds
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