If you hold a gold coin, you own a gold-coin-worth, and that's all there is to say about it.
Every dollar is backed by an interest-paying loan. Meaning the bank is charging you for the privilege of holding a dollar. (Or charging a debtor on your behalf. In terms of social trends it's the same thing.) Further, inflation. The central bank charges everyone who holds dollars for the privilege of holding dollars. Double jeopardy.
With the gold coin, sure Rome can debase the aureus, but Rome can't debase your aureus. You have to agree to give it back first. With fiat currency, you have to agree to let the Eccles Building debase your dollar whenever they feel like it and however much they happen to feel like doing it.
Basically if someone offers you fiat currency, the correct answer, with no exceptions, is "No." Legal tender laws can force you to take dollars, but you should immediately turn around and buy gold (or whatever) with the dollars. Hold them as briefly as possible. The price of dollars should be in the toilet all the time since everyone is constantly trying to sell, except maybe around tax season.
Obvs you can't offer penalties in your store for paying with fiat currency...but they forgot you most certainly can offer discounts for paying with real money. "10% off all items if paid in BTC." Post the same numbers but the big one as normal instead of the small one.
Though this means anyone who accepts fiat currency as "money" absolutely deserves the reaming they end up getting.
2 comments:
Did no one ask yet? If so, I'm asking.
If you hold a gold coin, you own a gold-coin-worth, and that's all there is to say about it.
Every dollar is backed by an interest-paying loan. Meaning the bank is charging you for the privilege of holding a dollar. (Or charging a debtor on your behalf. In terms of social trends it's the same thing.)
Further, inflation. The central bank charges everyone who holds dollars for the privilege of holding dollars. Double jeopardy.
With the gold coin, sure Rome can debase the aureus, but Rome can't debase your aureus. You have to agree to give it back first. With fiat currency, you have to agree to let the Eccles Building debase your dollar whenever they feel like it and however much they happen to feel like doing it.
Basically if someone offers you fiat currency, the correct answer, with no exceptions, is "No." Legal tender laws can force you to take dollars, but you should immediately turn around and buy gold (or whatever) with the dollars. Hold them as briefly as possible. The price of dollars should be in the toilet all the time since everyone is constantly trying to sell, except maybe around tax season.
Obvs you can't offer penalties in your store for paying with fiat currency...but they forgot you most certainly can offer discounts for paying with real money. "10% off all items if paid in BTC." Post the same numbers but the big one as normal instead of the small one.
Though this means anyone who accepts fiat currency as "money" absolutely deserves the reaming they end up getting.
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