E-money is the ultimate form of Fiat if you ask me. All fiat has a history of corruption and collapse (the american dollar and other world currencies are heading that way as well). Fiat money is the money of the statist, since it allows those in charge of the press to create as much money as they need, while dilluting what the rest of us hold.
The question isn't "what form will money be in", the question should be "what assets will back our money". I don't care if its in the form of rice crispies, as long as it is backed by an asset (gold, food, land, space rocks) and has real value.
Lets look at the currency called the American Dollar.
It is no longer backed by gold, as you said. Instead, it merely is backed by a promise that it is worth something. How is this different from a gold-backed currency like the old American Dollar. Well, since the old dollar did not actually come attached to a piece of gold and in fact was not even exchangable for gold it's last 40 years.
So, what is the difference between the two? Little. Both are backed by promises. The only difference is what the promise is. If you cannot trust the US to back the current dollar, why could you trust them to back the old one, in the absence of proof that it is equivalent to gold?
With E-Money, you have to trust the issuer that they exchanged real money for it and did not just "print it". Do you trust them?
1) the old promise was changed while lots of people held dollars. The fact that it happened slowly over a period time starting 70 years ago doesn't change the magnitude of the theft. So, no I don't trust the US to back either the old or new dollar. And If I buy gold I get taxed on the 'profit' that I make for simply holding it while more money is printed out of thin air.
2) The new promise isn't that the dollar is 'worth something'. The new promise is that you need it to pay taxes, so I promise, you better figure out how to get some, or we are going to send guys with guns out to take all your stuff. I guess that is worth something, but I'd sure rather have a currency based on voluntary behavior than one based on extortion.
What is BEHIND that money... that is the question. (Score:5, Interesting)
E-money is the ultimate form of Fiat if you ask me. All fiat has a history of corruption and collapse (the american dollar and other world currencies are heading that way as well). Fiat money is the money of the statist, since it allows those in charge of the press to create as much money as they need, while dilluting what the rest of us hold.
The question isn't "what form will money be in", the question should be "what assets will back our money". I don't care if its in the form of rice crispies, as long as it is backed by an asset (gold, food, land, space rocks) and has real value.
you have a shallow understanding of the issues (Score:0)
It is no longer backed by gold, as you said. Instead, it merely is backed by a promise that it is worth something. How is this different from a gold-backed currency like the old American Dollar. Well, since the old dollar did not actually come attached to a piece of gold and in fact was not even exchangable for gold it's last 40 years.
So, what is the difference between the two? Little. Both are backed by promises. The only difference is what the promise is. If you cannot trust the US to back the current dollar, why could you trust them to back the old one, in the absence of proof that it is equivalent to gold?
With E-Money, you have to trust the issuer that they exchanged real money for it and did not just "print it". Do you trust them?
This is one of the largest obstacles for E-Money.
Re:you have a shallow understanding of the issues (Score:1)
but
1) the old promise was changed while lots of people held dollars. The fact that it happened slowly over a period time starting 70 years ago doesn't change the magnitude of the theft. So, no I don't trust the US to back either the old or new dollar. And If I buy gold I get taxed on the 'profit' that I make for simply holding it while more money is printed out of thin air.
2) The new promise isn't that the dollar is 'worth something'. The new promise is that you need it to pay taxes, so I promise, you better figure out how to get some, or we are going to send guys with guns out to take all your stuff. I guess that is worth something, but I'd sure rather have a currency based on voluntary behavior than one based on extortion.