Banks have been around for hundreds of years. The first banks started out as places that held gold in deposit and gave you a receipt that you could use to get your gold back. From there, some banker got the wild idea to make the note itself transferable to other people. Paper money was born.
The use of cryptocurrency is on the rise in Africa. This is due to the financial and political instability.
What is digital fiat and how does it work? Does it compare favorably with cryptocurrency?
The word “fiat” comes from the Latin and means “let it be done.” Since fiat money has no value outside of this government decree that it does, it is said to have no intrinsic value.
What would happen if the world went back to the gold standard and actually backed their currencies with something of value? First, let’s examine how the gold standard came to be and how it came to be overthrown. Then we’ll discuss the why and how of a new gold standard.
In the world of traditional trading, automated market making is a relatively new technology. Automation replaced human market makers who were the worker bees of trading pits. Automated market makers (AMMs) changed the landscape of trading. The efficiencies gained by utilizing the automated programs had several positive effects on the market.
Bitcoin first appeared in 2009 as a novelty. It wasn't long before it became a toy. Then hedge funds and serious investors began to take notice. More and more often, the applications of Bitcoin take on a maturity that makes its previous lives seem very quaint. Where does the world stand on the adoption of Bitcoin?
Inflation is defined as the increase in the money supply in an economy. It derives from the Latin word inflate, meaning, “to blow up.” When the money supply grows faster than the amount of goods and services in an economy, prices usually increase.
According to Ludwig von Mises, the boom of the “Roaring Twenties” was the result of the US Federal Reserve Bank and its policy of easy credit. When it became obvious that the economic boom was built on sand, the economy crumbled.
We often hear about the national debt and the staggering amount of money it represents. But it’s not like we get a bill for it. We don’t directly pay our country’s debts, so the number doesn’t really hit home for us. That begs the question, how does your country’s debt actually impact you?