September 28, 2021

My Money Magick

The Money, Tax and Law Underground

Counterpoint to gold-backed currency from Arthur Hayes

1 min read

The best forms of money have no industrial use case. Fiat currencies are very useful for commerce because they are intrinsically worthless. The demand to use a particular fiat is completely tied to the usefulness of its network. The network in this case is the number of domestic and or international trading counterparties that will accept a particular fiat currency in exchange for goods and/or labour.

The reason why commodity forms of money are not great for everyday use is that they have a value tied to some real-world use case. A barrel of oil is a terrible currency. 

Arthur Hayes Crypto Trader Digest May 13, 2021

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