Genesis Mining used a survey to find out how many dollars Americans know of their own currency. According to this study, 30% believe in the dollar's gold standard.
The end of the gold standard
With the end of the Bretton Woods system in 1971, the dollar was released from the gold standard. Since then, the value of the currency is no longer based on the gold reserves of the US Central Bank. Money is based solely on the trust citizens place in the dollar and the government.
As you can see on the graph, the purchasing power of the dollar fell significantly between 1913 and 2013. When the decision was made to break with the gold standard, the currency was again degraded.
By whom or what is the dollar supported?
Yet, a large part of the American population think that the dollar is still backed by gold.
Genesis Mining offers cloud extraction services. In a survey of 23 questions, the company wanted to examine the perception that people had about the currency and the banking system.
29.3% of those surveyed believe that the dollar is backed by gold. 30.1% state that the government guarantees the value. 5.8% declared bonds and 4.1% said that oil would guarantee the value of the dollar. 23.6% said they had no idea and 7.1% ignored the question.
The results are interesting. The misconception that gold determines the value of the US dollar and that nearly a quarter of those surveyed claim to have no idea is worrisome.
Proof of work
Unlike currencies such as the dollar, the base value of Bitcoin is covered by proof of work. The time and energy needed to extract Bitcoin guarantee a minimum price. Because the stock of Bitcoin is finished, similar to a precious metal, it is also called digital gold. Crypto fans hope to become the alternative in times of economic instability.
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Corinna is the editor-in-chief of Coinwelt. Since 2016, his world is based around crypto-currencies and blockchain. No day goes by without Corinna being bored for not investing in Bitcoin the first day. She finds the international legal situation particularly interesting for currencies such as Bitcoin. For the future, she hopes for a positive attitude from lawmakers and clear laws on the treatment of digital parts.