Hacker Read

BrissyCoder · 2021-12-05 15:58:27

Nah. It's backed by cash and cash equivalents mate.

segmondy | karma 7167 | avg karma 2.65 · | 2019-08-09 00:58:45

No it's not. Money is money.

grey-area | karma 20642 | avg karma 5.04 · | 2019-06-10 18:49:03+00:00

What about it? You think the global financial system runs on cash? No.

exdsq | karma 3909 | avg karma 2.09 · | 2022-03-09 20:43:57

No, this includes cash too. Look at the World Bank for one example.

asylteltine | karma 328 | avg karma 0.57 · | 2023-12-17 06:08:42

No because this uses real money

a_victorp | karma 43 | avg karma 2.69 · | 2024-05-19 02:02:19

Nah, it values money more

Closi | karma 8474 | avg karma 3.3 · | 2021-04-14 07:04:19+00:00

Correct - But that doesn’t mean that money is backed by time, either.

mhluongo | karma 2166 | avg karma 2.69 · | 2021-03-31 22:51:37+00:00

Of course it's backed by social consensus. Money is a social construct, not sure why you're trying to move the goalposts

carguy1983 | karma 491 | avg karma 4.31 · | 2012-04-17 11:11:47

It's not actual money.

kuished | karma 12 | avg karma 2.4 · | 2022-05-08 06:03:05

You realise that applies to “real money” too right?

technoslut | karma 1408 | avg karma 3.03 · | 2011-08-25 12:11:41

It is when it comes to money.

CodeGlitch | karma 1736 | avg karma 1.76 · | 2021-02-25 09:24:41+00:00

I meant what is 'money' anyway? :)

hkt | karma 1964 | avg karma 1.3 · | 2021-03-14 14:12:33+00:00

Actually, all money is backed by the available goods and services in an economy. It is a plate that spins itself.

Finnucane | karma 5191 | avg karma 1.75 · | 2017-09-30 19:06:37

Does it work as money? It hasn't yet.

tomatowurst | karma 627 | avg karma 1.72 · | 2022-05-28 16:02:25

its not real money

OscarCunningham | karma 4629 | avg karma 3.16 · | 2023-01-15 02:05:15

No. The arbitrary definition of 'money' being used by the article is the UK's M4 (https://www.bankofengland.co.uk/statistics/details/further-d...). This basically includes bank accounts along with any cash held outside banks. Since Alice isn't a bank, her IOUs don't count.

t-3 | karma 2177 | avg karma 1.5 · | 2022-08-03 09:51:57

> Real money" is backed by more than just electrons.

Yeah, it's also backed by violence. Not really any more tangible or less arbitrary than electrons, which are how the banks create money.

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airstrike | karma 14561 | avg karma 3.22 · | 2020-04-22 15:54:03+00:00

That's not where the value of money comes from, though

thinkloop | karma 2115 | avg karma 2.03 · | 2017-11-23 09:34:09+00:00

It is for sure, and it's fine, the amounts of money being mentioned are only material if you picked the short geoeconomic straw.

arcticbull | karma 30340 | avg karma 3.27 · | 2022-05-23 13:23:41

Not being backed by 'hard assets' is not the same thing as being backed by 'nothing.'

Generally this belies a serious lack of understanding of where money comes from and where it derives its value.

If I go to the bank, and borrow money for a house in the form of a mortgage, then new money is created. An obligation to repay that money is also created. That obligation to repay is collateralized by my house. In this case, the new money that was created was in fact backed by hard assets.

More generally the value of money is derived from an obligation to repay the debt that created it, and the legal system and framework which enforces it.

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