4 min read.Updated: 23 Feb 2022, 01:04 AM ISTVivek Kaul
Both grew popular on opposing views of inflation but a lack of nuanced analysis has hit them hard
Shaktikanta Das, governor of the Reserve Bank of India (RBI), recently said in the context of cryptos that they “have no underlying [asset]". “Not even a tulip!" In the 17th century, Dutch investors bought tulips, leading to their price skyrocketing. When the bubble burst, many speculators were caught napping. Interestingly, true believers in crypto make a similar argument about fiat money. “What backs fiat money?" “Nothing," is their answer. But this isn’t true. As Gavin Jackson writes in Money in One Lesson, fiat currency gets its value “from the government declaring it has value… It has worth by government fiat."