If every billionaire is starting their own cryptobank, what else incentivizes people to use one bank’s currency over another? It’s got to (hopefully) be something other than the reputation and trustworthiness of the men that own the bank.
This is exactly how banking works, trust and vibes.
The US Dollar is backed by the trust and assurance of the US government. Insert “our words are backed by nuclear weapons!” civ meme.
There’s a very loud and vocal minority that advocates for currencies backed by natural resources. This is generally considered a terrible idea, because it means your currency is heavily tied to commodity price fluctuations, resulting in much more volatility. E.g. during recessions, governments should spend more to lift the economy, but cannot do so they pursue a Gold Standard.
This is exactly how banking works, trust and vibes.
The US Dollar is backed by the trust and assurance of the US government. Insert “our words are backed by nuclear weapons!” civ meme.
There’s a very loud and vocal minority that advocates for currencies backed by natural resources. This is generally considered a terrible idea, because it means your currency is heavily tied to commodity price fluctuations, resulting in much more volatility. E.g. during recessions, governments should spend more to lift the economy, but cannot do so they pursue a Gold Standard.