Gepost in:2023.09.28
Author: lufxv
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There was an exchange rate from any substance to gold and vice versa.However, in a Fiat money, these notes and coins do not represent any actual material like gold or silver.Modern: Centralized “Fiat” Money This is the money we knopera vpn uk locationow from our daily use....
The bank stores this information in its private notebook (or database) and makes it ready for client queries.The above also clarifies the reason that this type of money is called “Fiat”, the word fiat came from Latin and means “let it be done” or “it shall be” used in a sense of an order or decree.There was no need of an authority to declare that this amount of gold is actually worth this amount of wood etc....
Thopera vpn uk locationis way you could buy anything you need, by exchanging it with some other thing of yours that has the same gold-value.Thopera vpn uk locationis way you could buy anything you need, by exchanging it with some other thing of yours that has the same gold-value.transactions for either earned or spent money....
There was no need of an authority to declare that this amount of gold is actually worth this amount of wood etc.A crucial point here is the role of the bank, if you are playing in this game you must trust it and be able to tell if a note that someone pay you with has a valid or a forged signature.sed throughout history, we can observe that at the beginning of trade people used a decentralized system, later they switched to a centralized one, and nowadays the cryptographic community is making enormous efforts to switch it back to a decentralized form, with a more modern twist....
In that sense, we refer to the bank as the centralized point in the system, it reserves gold bricks for his clients and put his signature on the notes.A crucial point here is the role of the bank, if you are playing in this game you must trust it and be able to tell if a note that someone pay you with has a valid or a forged signature.As explained, these notes are substantially worth nothing, but due to regulation, they’re worth the number that is written on them (this number is also called their “face value” by the economist jargon)....
