1994-05-04 - Re: Giving Value to Digital Cash

Header Data

From: “Perry E. Metzger” <perry@snark.imsi.com>
To: cypherpunks@toad.com
Message Hash: f3aab7789655a0707ec9f11aadb68b2e249063b74c96bf0febef701a64cb7524
Message ID: <9405041159.AA01181@snark.imsi.com>
Reply To: <199405040552.AA02485@xtropia>
UTC Datetime: 1994-05-04 11:59:50 UTC
Raw Date: Wed, 4 May 94 04:59:50 PDT

Raw message

From: "Perry E. Metzger" <perry@snark.imsi.com>
Date: Wed, 4 May 94 04:59:50 PDT
To: cypherpunks@toad.com
Subject: Re: Giving Value to Digital Cash
In-Reply-To: <199405040552.AA02485@xtropia>
Message-ID: <9405041159.AA01181@snark.imsi.com>
MIME-Version: 1.0
Content-Type: text/plain

anonymous@extropia.wimsey.com says:
> Most major economies are using fiat money today, so it is clear that fiat 
> money will work.

Fiat money works because guns are used to force people to accept it.
You have to pay your taxes in it, the laws are written so that all
commercial paper requires that you use it, the government makes all
its purchases in it, etc. The result of this is that it is accepted.
It is substantially harder for people to accept fiat money that
doesn't have guns barrels backing it up.