Complex issues with money stem from distribution and creation, not its form

From Investing.com: 2025-02-19 01:43:00

The problem with money is complex, with solutions ranging from gold-backed currency to bitcoin. The issue lies in the distribution and creation of money, not the actual form it takes. Sound money doesn’t solve the core problems: not enough currency for all activities, wealth disparity, and human propensity for speculative bubbles. History shows that credit and commerce have always been intertwined, with the majority of “money” being credit or fiat. Central banks were created to address the need for credit and circulation of money while mitigating the negative impacts of speculative bubbles and crashes. Money is tied to human psychology, scarcity, and distribution, making it a complicated issue with no simple solution.



Read more at Investing.com: The Problem With Money Isn’t Money