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53 sats \ 3 replies \ @kepford OP 8h \ parent \ on: Which is Worse: Taxes or Fiat Money? econ
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.
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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