| > How do you think the dollar keeps its value? Base demand for dollars is created due to taxation. As the money supply is managed via fractional reserve lending, each new dollar that enters circulation is backed by the demand for repayment of that loan. When someone borrows money from a bank, the bank enters a negative balance in its ledger and the borrower gets a positive balance in their account. This is how money is created. As the loan is repaid, the money is destroyed. Dollars are fully backed by demand for dollars. It's really quite elegant. > Do you understand that the reason it has value is because it’s backed by the US military, which provides peace and stability for industry to consume a vast amount of energy to produce goods that get shipped around using fossil fuel? This is utterly irrelevant. The US military existed for hundreds of years on hard money. World wars were fought on hard money. > Have you calculated the total energy expenditure of the entire US financial system, direct and indirect, and then compare it to proof-of-work calculations? Sure, and as a percentage of transaction count, transaction value, or basically any other metric it utterly pales in comparison. [1] > Don’t just parrot what the current-day zeitgeist told you to think. Ditto the crypto echo chamber. [1] https://digiconomist.net/bitcoin-energy-consumption/ |
I get that this is working econ theory, but is that even meaningful? Do you honestly think people hold dollars because "someone can use it to.pay taxes"?