Why was the US dollar initially backed by gold?

Because gold provides fiat currency with an honest unit of accounting and a stable store of value.

What do you think has happened since President Nixon removed the US dollar from a gold standard in 1971?

- Unaccountable (literally), ever-expanding growth of the US dollar and dollar-denominated credit... both in the US and around the world (eurodollar)

- Highly inefficient store of value... with ever-decreasing purchasing power (robbing savers) over time

Fiat brains focus almost solely on medium of exchange as the primary attribute of money.

Prior to 1971--and throughout most of history--it would have been laughable to do so.

Ideal, sound money should provide an honest unit of account and be a stable or increasing store of value over both time and space.

And, it should be an excellent medium of exchange. But this is less relevant than the above-mentioned features... which are critical to the ongoing and increasing prosperity of the human race.

Fiat currency is clown world money.

All fiat currency units trend to zero value over time.

Governments love fiat, because it robs their own citizens of their purchasing power over time in a process call "inflation."

Inflation allows issuing governments to grow ever larger while their citizens grow ever poorer and, often, more reliant upon their governments... which are, ironically, actively robbing them.

Fortunately, there exists a better money for a better world.

Established in 2009.

#Bitcoin