It is potentially misleading to state "fiat is just the means of exchange...". We all know it is a medium of exchange - but that's too simple.
Fiat is literally only a piece of paper with numbers on ..... it has no tangible value. Once it is damaged (fire, ripping etc), it can no longer be a medium of exchange.
Fiat only stays a medium of exchange whilst users have confidence in the issuer. Once that confidence goes, then look out below...as Venezuelan's have been finding out!
The more Fiat that is issued, the more debt that is produced and that is where the problem gets worse. Fiat can literally be limitless - and so is the debt .... just ask the US!!
Gold on the other hand does have tangible value....it doesn't burn....it can't be ripped....it can be used in industry....it is a finite resource...etc etc etc.
When you take all that into account...it is clear the use of Gold will always outperform the use of Fiat.
It is potentially misleading to state "fiat is just the means of...
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