Money Is Only Backed By Faith

in dtube •  5 years ago  (edited)


In the past 100 or so years, the US dollar has gone down about 95%. Bitcoin has gone up over 7000% in less than 10 years.

Yet, people continue to bash Bitcoin and question what really backs Bitcoin? There's nothing backing US dollars aside from faith. The thing is you have faith and know that it will decline and continue to inflate. With Bitcoin and cryptocurrency, our faith is that it may go up or down, but with US dollars, it's only going down.

It has gone down so much so that if you put money in the bank today, in 10 years with the best interest rate possible, you will have more dollars in the bank and more numbers on the screen, but you won't be considering that the money you've gained and stored has all gone down in value. It won't be entirely obvious aside from everything around you has become more expensive except consumer goods.

Consumer goods are always getting a little cheaper which make them so enticing to spend on, what you really need to do is invest to ensure you don't lose the value or your money to inflation. One of the easiest ways to do this is in gold. An even easier way today is via cryptocurrency, though it can be a gamble all the same. One thing is for sure, I'd rather bet on potentially gaining wealth rather than betting on slowly losing wealth indefinitely.

What do you think about this? Let me know in the comments below


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Hello from BC added you to my follows ....Your topics look interesting !!! c u around!

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Such a hard concept to get people to wrap their heads around!

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A nitpick: the dollar isn’t really money, it’s currency.

Any standard definition of money notes not only its use as a medium of exchange, but also its function as a “store of value”. The USD fails at this. Gold passes that test. And it can be argued that Bitcoin does a better job at it than the USD does.

The USD is backed by “the full faith and credit of the United States government”, in other words, it’s backed by debt.

Yeah that's true. In regards to it being backed by the government though, it's run by the federal reserve which isn't the government even. It's definitely backed by debt though

I like the idea skycoin has for a decentralised internet with a crypto on it... One could have faith that no country could be monetarily attacked like Venezuela was. With a world wide crypto currency on a decentralised internet that would be very difficult to shut down or censor ...

Yeah absolutely!

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I would say if a person has discretionary funds sitting around that wouldn't set them back if they invested in a questionable venture that ended up failing then that may be a right decision for them, on the other hand if what you have is all that you have to lose then I wouldn't advise sticking it into a questionable adventure as a wise move.

Agreed, though what is "questionable" when we know that USD is trending down towards 0 and in 100 years only ever went up once. In the past 60 years, it has only gone down.