• 9. 6. 2025 • H. T. •
Historically, money has almost always been linked to a physical unit—whether it was precious metals like gold and silver, commodities like grain, salt or cattle. Even physical banknotes were backed by a tangible asset. This connection gave money intrinsic value, ensuring trust and stability in trade.
However, the shift away from physical backing started with fiat currency not linked to a physical commodity but rather valued by government decree. This transition accelerated with digital transactions, cryptocurrencies, and purely electronic financial systems.
So, while money historically needed a tangible reference point, modern finance has largely detached itself from physical constraints. The question then becomes: does money need a physical unit to create stability and maintain value, or is trust in the system enough?
The answer should be obvious.
