THE VALUE OF A CURRENCY

[Brenda]

1. The U.S. Dollar (Fiat) is currently only  backed by the 'Full Faith and Credit' of the U.S Government.
2. IN other words, If the world stops believing in the Government's ability to honor/pay it's debts/bills, Fiat becomes worthless( 'no store of value'.
3. Cryptocurrencies (Bitcoin, Etherium, Guapcoin, etc.) are backed by the people's expectation of its value.
4. If people are able to successfully  exchange cryptocurrencies for 'goods and services', then, cryptocurrencies will have an increasing  'store of value' over time!
5. If the  U.S. Government's Fiat becomes worthless it will no longer print paper currency or mint  metal coins.
6. In the 17th century in the Netherlands, tulips were once a form of currency, one tulip bulb costing as much as a house at one time.

Edited October 20, 2022 by Brenda