🧧 Fiat Currency Vs Gold Standard

^{Gold has a profound impact on the value of world currencies. Even though the gold standard has been abandoned, gold as a commodity can act as a substitute for fiat currencies and be used as an} ^{The formalization and development of the gold standard began in 1696 and 1812. The gold standard is no longer in use by any government. Britain ceased the use of the currency in 1931 followed by the U.S in 1933. The system was replaced by fiat money, a mandate by the government to use a given type of currency. Advantaged of the gold standard}

In this sense, gold was as 'fiat' as paper and bank drafts are now - and as gold/dollar exchange rates early last century were. (The 'gold standard' was a standard , after all.)

Lets discuss some of the properties of what makes a good currency and where Bitcoin fits now compared to gold and fiat 1) Durability = Gold is best here due to its history and physical nature. Bitcoin and fiat being digital in nature means we must compare the durability of the institution/network that issues and secures them. ^{Fiat Currency vs. Gold Standard - Side-By-Side Comparison Have you ever considered why people often make Fiat currency vs. gold standard side-by-side comparisons? What are their differences and similarities, and why should every passionate Forex trader learn it well?} Fiat money is currency that's backed by the public's faith in the government or central bank that issued them and is the standard throughout most of the world. It has no intrinsic value, unlike commodity currency, which is linked to the prices of a commodity such as gold or silver. taG2oAt. 146 137 421 165 308 193 263 431 347

fiat currency vs gold standard