Is fiat money better than gold? Kinesis looks at both in-depth and highlights their inherent advantages and disadvantages in our explainer.
The gold standard vs. fiat currency debate has gone on for centuries. Different groups have argued about the merits and pitfalls of a hard currency system—generally with the wealthy being in favor of a currency backed by a tangible asset like gold, and economically disadvantaged Americans supporting fiat currencies (government-issued money Legal tender is any official medium of payment recognized by law that can be used to extinguish a public or private debt, or meet a financial obligation. The national currency is legal tender in Narrator: The United States ended its attachment to the gold standard in 1971, converting to a 100% fiat money system. Today, there isn't a single country that backs its currency with gold. But what are the key differences between a fiat system and a currency backed by gold? Fiat money vs Gold Standard. Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills. 63 posts 1; 2; Next; Topic Author. LH Posts: 5490 v t e Fiat money is a type of currency that is not backed by a commodity, such as gold or silver. It is typically designated by the issuing government to be legal tender, and is authorized by government regulation. Since the end of the Bretton Woods system in 1971, the major currencies in the world are fiat money. jH7MUtI. 400 422 169 19 157 339 83 425 72

fiat money vs gold standard