| Your comment arrogant so I expect you will get badly down voted. It is also fundamentally wrong, so I will comment nevertheless. Maybe I can save some poor soul from this naive ideology. The question is not really about what are the downsides of FIAT money. All solutions have problems. Even if cryptos could solve all problems that FIAT has, that does not mean it is a better solution to the problem that FIAT solves. The question is really about what problem money solves in the first place. The foremost purpose of is to distribute resources. Money is a completely social construct that does not have any value itself, all value is derived from the promises of those who have resources make. Real world resources, like oil, are what ultimately matters. As a side note, this is also why the Russian sanctions don't really work as well as some people hope for, and they are ultimately a bad idea. Anyways, I think it's fair to say say that the current financial system has been extremely successful compared to any earlier financial system, such as the gold standard. Everyone who understands finance even a tiny bit knows that a system with finite money supply like gold does not solve the actual problem the current financial system is solving. It may solve some issues that money has, such as efficiency, transparency, and transfer costs, but as a tool for distributing resources it's useless. So the comparison you are making is meaningless. Even if those problems would be solved, it won't solve the problem money is actually solving. On top of that, the problems you mention are not problems of money. They are problems of people, of human nature. New money will not fix them. |
That sentence literally refutes itself.