Fiat currency is money that is not backed by a physical commodity like gold or silver, but rather by the government’s guarantee that it can be used as a medium of exchange.
In other words, money that is printed out of nothing and backed by policy.
It is what most of the world uses.
Fiat currency is created and controlled by a central bank and it includes physical currency like cash and coins as well as digital currency like bank reserves.
Cryptocurrency (like Bitcoin) is a digital asset that uses cryptography to secure its transactions and to control the creation of new units. It operates independently of central banks and is decentralised, meaning it is not controlled by any government or institution.
I have mixed feelings about crypto, in spite of owning some. I love the idea of private money, but I can’t quite pin down my reservations.
Central Bank Digital Currency (CBDC) is a type of digital currency that is issued and backed by a country’s central bank. It is profoundly dangerous because it is programmable and entirely surveilled (hence it being tightly linked to digital ID).
John Titus has a YouTube channel in which he breaks apart financial matters.
He joined me for a conversation around the pros and cons of cash, as well as why Western sanctions against Russia are going to accelerate the destruction of the US Dollar.
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