Re:Bitcoin’s Wild Ride Shows the Truth: It Is Probably Worth...
by TheCoelacanth on Tuesday September 19, 2017 @11:43AM
(#15285630)
Every fiat currency that I'm aware of has some associated government that requires taxes to be paid to it in that currency, so it is essentially backed by every asset that government has taxation authority over.
Want to own real estate? Then you also need to acquire some currency to pay your property tax bill.
Want to buy food to eat? Even if you pay for the food with some other form of payment, you still need some of the local currency to pay the sales tax on that food.
Want to get compensated for your labor? Even if you want your compensation to be in some other form, you still need some of the local currency so that you can pay your income tax bill.
Want to hire someone to do something? Even if they accept some other form of payment, you still need some of the local currency to pay their payroll tax.
That creates a guaranteed base level of demand for the currency that will never go away, so the currency will always be worth something unless the government collapses or prints too much money.
Want to own real estate? Then you also need to acquire some currency to pay your property tax bill.
Want to buy food to eat? Even if you pay for the food with some other form of payment, you still need some of the local currency to pay the sales tax on that food.
Want to get compensated for your labor? Even if you want your compensation to be in some other form, you still need some of the local currency so that you can pay your income tax bill.
Want to hire someone to do something? Even if they accept some other form of payment, you still need some of the local currency to pay their payroll tax.
That creates a guaranteed base level of demand for the currency that will never go away, so the currency will always be worth something unless the government collapses or prints too much money.