Global Feed Post Login
Replying to Avatar hoppe

That would be a massive bank run. It might temporarily look like the value of fiat money is rising — and in some ways, it actually is — but people won’t be able to access that money. In modern society, all assets are someone else’s debt. A chain of defaults will follow. The people who used to watch others’ assets go up with envy might feel thrilled for a moment, but they’ll soon realize the bank doesn’t have their money either.

Avatar
hoppe 8mo ago 💬 1

In the end, one way or another, the direction may look different, but the essence is the same — the price of fiat money inevitably converges toward its intrinsic value: zero.

Reply to this note

Please Login to reply.

Discussion

Avatar
SuiGenerisJohn 8mo ago

Sounds unfun.

Thread collapsed