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Originally Posted by data_mine
No current currency is backed by gold any more. fractional reserve banking wouldn't work requiring actual gold (or insert shiny object here) per $ in the economy.
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You are correct, there is no currency backed by a precious metal. The advent of fractional reserve banking put an end to it. The banks will sing the virtues of it but it is the single most destructive financial instrument the world has ever seen.
Quote:
Originally Posted by data_mine
As for value added economic output, how is the work done by you or me digging **** outta the ground or turning an apple in to a pie (adding value) any different to the work input required to keep the blockchain networks running - this requires actual effort, electricity etc. Sure it's not as tangible, but many things we pay real money for aren't tangible these days, how many here have paid for music and didn't get a LP/tape/CD?, and even money isn't tangible anymore, with tap-n-go/paywave etc. your money is just a computer transfer of numbers - just like blockchain currencies?
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There is a massive difference between algorithmically rearranging electrons and adding tangible value by turning a raw material into something of usefulness via the input of intellectual or creative forces. In a nutshell, turning the intangible into something tangible is the only way to create true wealth and value.
I might sound like a Luddite, but the balance between tangible and intangible needs to be restored.