Fiat: Money By Force

I don’t always agree with what Anonymous does or what they stand for, but, this video on bitcoin, blockchain, and cryptocurrency is pretty good:

As mentioned in the video:

President Nixon effectively created our current monetary system, a system where no currency is backed by gold or anything of value. This is what is known as fiat currency. Fiat currency is currency that’s backed by nothing except government promises.

The word fiat is a latin word and it basically means a currency that’s circulating by force. If people have confidence in that currency and if there’s enough government force that will enable the currency to circulate for a period of time until people lose confidence in the currency.

“Money by force” is a very interesting way to think of it. Obviously, this is very different than “money by choice” which is a much better way to operate.