Fiat

Fiat currency has a really interesting incentive structure that is underappreciated.

If all currency is backed by gold, there is a motivation to hoard that currency.

Whereas if currency slowly inflates its value away, sitting on your piles of cash will diminish your buying power.

The incentive of fiat currency’s inflation therefore encourages the wealthy to put that currency to work.

Loaning their currency for innovative and growing businesses.

Fiat incentivizes growth and progress.