Fiat currency has no value because it’s literally useless to do anything with and gold has a tiny bit of utility value due to its industrial uses.
Fiat currency has value from its utility as a trade value token and wealth store, whilst gold has value as a wealth store, both only because and as long as people are willing to exchange them for things which do have a more utilitarian value.
I’m talking within the second value framework, so where trade tokens and wealth stores only have valuable as long as people think they have value and their value only is as much as people think they are worth - in other words their value derives from people’s trusting them to have value.
My point is entirely that there are more people in this world capable of reducing and even destroying the trust (and hence how much people are willing to exchange for them) on fiat currencies than there are of gold - fiat currencies are issued and controlled by governments, hence are a lot more subject to political interference than gold which is not issued or controlled by any government.
(My entire perspective is basically a financial risk exposure analysis on fiat currencies and gold as if they were assets just like all other assets, which concludes that gold has smaller political risks than even the major and most stable currencies. Whilst for major currencies usually the difference is too little to matter, in times like now with a bunch of bubbles - like the AI bubble - at the brink and the US Economy in a consistent downwards trajectory, that higher exposure of fiat to such risks is a lot more important - mismanagement of the crash or even as we see now with Trump of international confrontations is likely to hit fiat currencies much harder than gold)
One can think within the first value framework, but that’s pretty useless in modern society because that’s not how humans are operating, though it would make sense for a society with bartering only.
My talk about inflation was just an attempt at providing a mathematical perspective on it because I have some experience in Finance and a background in Science hence tend to see and explain via the perspective of Mathematics, but I guess that only made things more confusing.
Either:
I’m talking within the second value framework, so where trade tokens and wealth stores only have valuable as long as people think they have value and their value only is as much as people think they are worth - in other words their value derives from people’s trusting them to have value.
My point is entirely that there are more people in this world capable of reducing and even destroying the trust (and hence how much people are willing to exchange for them) on fiat currencies than there are of gold - fiat currencies are issued and controlled by governments, hence are a lot more subject to political interference than gold which is not issued or controlled by any government.
(My entire perspective is basically a financial risk exposure analysis on fiat currencies and gold as if they were assets just like all other assets, which concludes that gold has smaller political risks than even the major and most stable currencies. Whilst for major currencies usually the difference is too little to matter, in times like now with a bunch of bubbles - like the AI bubble - at the brink and the US Economy in a consistent downwards trajectory, that higher exposure of fiat to such risks is a lot more important - mismanagement of the crash or even as we see now with Trump of international confrontations is likely to hit fiat currencies much harder than gold)
One can think within the first value framework, but that’s pretty useless in modern society because that’s not how humans are operating, though it would make sense for a society with bartering only.
My talk about inflation was just an attempt at providing a mathematical perspective on it because I have some experience in Finance and a background in Science hence tend to see and explain via the perspective of Mathematics, but I guess that only made things more confusing.