TuckerFreeMoneyMeme

Currency Backing

  1. Commodity Redeemable (backed)
    1. Government Issued & Controlled
      E.g.: US dollar before 1971, British Pound before WWI
    2. Privately Issued Centralized
      E.g.: Gold & silversmith recepts, US free banking
      period 1840-60, paper Liberty Dollar
    3. Privately Issued Decentralized
      E.g.: Thaler circa 1500s, Liberty Dollar coins
  2. Scarcity/Use based (unbacked)
    1. Fiat - Government Issued & Controlled
      E.g.: All government-issued money since 1971.
      Central Bank Digital Currencies (CBDC.)
    2. Privately Issued Centralized
      E.g.: Green stamps, Facebook's proposed Libra.
    3. Privately Issued Decentralized
      E.g.: Cryptocurrencies such as Bitcoin, Etherium,
      Stellar, and Monero.

Backing Type Medium of Exchange Store of Value Unit of Account Integrity
Resists Corruption
Overall Rank
Commodity Backed
Govt Issued
A C B D B-
Commodity Backed
Private Centralized
A A A B A-
Commodity Backed
Private Decentralized
A A A A
Scarcity/Use Based
Govt Issued "Fiat"
A F C F
Scarcity/Use Based
Private Centralized
A C B B
Scarcity/Use Based
Private Decentralized
A C B A B+