RE:RE:Bitcoin Mania
Retiredgeo wrote: Fiat currencies are backed by the wealth and power of the economies of the nations that issue them. Without that wealth and power a fiat currency is just ink on paper such as the Zimbabwian dollar. What economy is backing up Bitcoin? - None!
Digital currencies are online commodities which some people think have value. I will stick with gold and silver which are universally valued and which will survive a computer hack!.
I agree with you guys about paper and digital currencies. Digital currencies are relatively new and I have heard horror stories of investors losing everything due to computer glitches and loss passwords and the entire investment just vanished into cyberspace never to be found. Lol
Yes with regards to paper currencies they are backed up by the country itself so there is value backing the currency. There is nothing that backs up these digital currencies that I can see. History has shown that the country with the strongest military and strongest economy has always been the reserve currency of the world with the strongest currency which has been the United States in our modern world recently. So heavily traded commodities like oil trades in USD.
I feel that gold is the ultimate currency because it has stood the test of time throughout our existence over thousands of years. It is a hard asset like land. I have always thought of gold as the commodity and/or currency that keeps all other currencies in balance across the planet. These paper and digital currencies can be created out of thin air but not gold. Gold is the ultimate currency!!!