Estimated reading time: 2 minutes
Have you overly stopped to think well-nigh how money isn’t really…..well, real?
That may sound like a wild, insane thought. But let’s provide some context.
For many years, the dollar (and the currencies of many other nations) were when by a gold standard. In essence, that meant that the value of the currency could be exchanged for a particular value of gold.
That is to say, the money in your wallet had a tangible and legitimate rationalization of value.
Then, in 1971, President Nixon severed the link between the US dollar and gold.
Meaning for the last half century, our dollar bills and shiny coins have no representative value.
Yes, money is technically “real” in the sense that you can hold a snout or a coin. However, money as it currently exists is nothing increasingly than a social construct.
The only reason a $1 dollar snout is valued as $1 is considering we believe it does—there is nothing unquestionably valuables up that currency.
Isn’t that a wild thought??
Want to take it a step further?
Did you know that increasingly than 90% of all global currency is virtual? It exists only in a digital format (i.e., numbers on a screen). It has no physical form.
Our unshortened system of transactions, loans, credit—our unshortened economy if you want to get radical well-nigh it—is based on nothing but a system of belief.
Let that sink in lol.
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