Quote:
Originally Posted by Canadianman
I try to stay out of this ridiculous debate (there is plenty of room for both fiat and digital currencies), the fact that someone controls the supply (and, as a result, the VALUE) of every single fiat currency is the #1 biggest weakness.
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The purpose of a currency beyond just as a means of exchange is to allow the Government to have some stabalizing control on an economy, it also enables them to insure the financial system, without this there are no credit cards, no car loans, no mortgages.
I have the advantage that I can remember life without credit, its not that far back, 1960's for the UK, if you wanted to buy a car you paid cash, there were no car loans.
A world without Government control is a world where we all have very little stuff, where banks are little more than places to keep your savings, they dont lend money beause it is too risky, the economy shrinks massively due to the lack of purchasing power.
People forget this is why our Grandparents lived 3 or 4 to a 2 bedroom house, it was because they couldnt borrow enough to have a bigger house, go back to the 1930's and most people had to pay cash up front for a house, there were no mortgages for ordinary folks.
Much like our ability to dislike 'big pharma' because we have become so used to easy access to medicines that cure common diseases that used to kill us or how we are so used to living in a stable democracy we can assume we can break democracy and everything will be fine we also assume without Government control (and it's associated insurance) of the economy it will be fine and all the things we like about fiat Government backed currancy will still go on, they wont, no Government control no Government backing, no backing no lending.