this post was submitted on 22 May 2024
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Lemmy Be Wholesome

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Welcome to Lemmy Be Wholesome. This is the polar opposite of LemmeShitpost. Here you can post wholesome memes, palate cleanser and good vibes.

The home to heal your soul. No bleak-posting!

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[โ€“] SwingingKoala@discuss.tchncs.de -5 points 1 year ago (2 children)

Decentralizing stuff is good!

Maybe we can do money next.

[โ€“] SorteKanin@feddit.dk 5 points 1 year ago (2 children)

I kinda think the whole point of currency is a central method of exchanging value. If everyone used different currencies, it wouldn't be any better than bartering.

[โ€“] grrgyle@slrpnk.net 2 points 1 year ago* (last edited 1 year ago)

I mean I'm down for local money

Not really convertible, but good for radishes and such

[โ€“] SwingingKoala@discuss.tchncs.de 2 points 1 year ago (1 children)

You're exactly right, in a free market of currencies people would naturally end up using the best money. This is what has happened historically and we had a gold standard. The current financial system forces us to use a specific currency and forbids competition.

[โ€“] SorteKanin@feddit.dk 5 points 1 year ago (1 children)

had a gold standard

How is the situation today different than it was back then? I know we don't base our money on gold any more, but it's not like there were much fewer currencies back in the day right? More like there was more since the Euro has eaten up many currencies. I'm not a currency expert, genuinely asking

[โ€“] SwingingKoala@discuss.tchncs.de 3 points 1 year ago* (last edited 1 year ago) (1 children)

How is the situation today different than it was back then?

Historically people used all kinds of money, like feathers, shells, stones, and ended up with silver and gold. The reason for this is that silver and gold are the hardest to produce. Every time somebody can inflate the money supply they can extract value from everybody who uses that money. Europeans did this in many colonies for example, e.g. by manufacturing glass beads that were used as local currency.

The dollar was backed by gold in the past (Bretton Woods), but Nixon did a rugpull and refused to give other countries gold for their dollars. Since then the US keeps printing more and more dollars, now adding a trillion every three months while the first trillion took like a century.

So, the difference between then and now is that the dollar used to be strong, and now it is weak. It's still strong enough to be the world reserve currency, but there are cracks in the system and they grow.

[โ€“] SorteKanin@feddit.dk 5 points 1 year ago

Hmm interesting. I'm not sure a gold-backed currency and a currency as it is today is so different, but I'm not really qualified to talk about this so I'll just leave it at that.

It'll have to be everything simultaneously. The world's a mess.