The post Elon Musk Declares Bitcoin “Real Currency” Based on Energy While Calling Fiat Money “Fake” ⋆ ZyCrypto appeared on BitcoinEthereumNews.com. Advertisement &nbsp &nbsp Elon Musk, an occasional advocate of Bitcoin and cryptocurrencies in general, has suggested that Bitcoin is a real currency because it is based on energy. In contrast, fiat currencies are fake because governments throughout history have issued them without any real backing. Musk is known to have contempt for fiat currencies, as he has repeatedly tweeted about their problems. Musk Joins in Debate Around Fiat Currencies Musk was replying to an earlier original tweet by zerohedge, a news commentator specializing in the economy. Zerohedge tweeted: Are Fiat Currencies Fake? The history of fiat currencies is millennia old. Still, the modern version of these national notes began in 1971 when the US government, under President Richard Nixon, ended the gold standard for the US Dollar, causing a momentous shift in global economics. Previously, all national currencies had to be backed by Gold. With the Gold standard removed, many economists feared that governments around the world might go on a money-printing spree at some point in the future, potentially landing the economy and the average consumer in trouble due to rampant inflation.  Here is the USD’s purchasing power for the last 70 years: Advertisement &nbsp Here is the USD/Gold graph during this time: Both of these crucial graphs show that the USD’s purchasing power has dropped sharply since 1955, while Gold has risen exponentially against the greenback, particularly after the end of the gold standard in 1971. The main reason why the US reserve currency has suffered a lot over the past 5 decades, in particular, is that the central bank, also known as the Federal Reserve, can theoretically print as much money as it likes. The activity has particularly witnessed sharp spikes around the time the US entered major military escalations.  Instead of raising taxes or… The post Elon Musk Declares Bitcoin “Real Currency” Based on Energy While Calling Fiat Money “Fake” ⋆ ZyCrypto appeared on BitcoinEthereumNews.com. Advertisement &nbsp &nbsp Elon Musk, an occasional advocate of Bitcoin and cryptocurrencies in general, has suggested that Bitcoin is a real currency because it is based on energy. In contrast, fiat currencies are fake because governments throughout history have issued them without any real backing. Musk is known to have contempt for fiat currencies, as he has repeatedly tweeted about their problems. Musk Joins in Debate Around Fiat Currencies Musk was replying to an earlier original tweet by zerohedge, a news commentator specializing in the economy. Zerohedge tweeted: Are Fiat Currencies Fake? The history of fiat currencies is millennia old. Still, the modern version of these national notes began in 1971 when the US government, under President Richard Nixon, ended the gold standard for the US Dollar, causing a momentous shift in global economics. Previously, all national currencies had to be backed by Gold. With the Gold standard removed, many economists feared that governments around the world might go on a money-printing spree at some point in the future, potentially landing the economy and the average consumer in trouble due to rampant inflation.  Here is the USD’s purchasing power for the last 70 years: Advertisement &nbsp Here is the USD/Gold graph during this time: Both of these crucial graphs show that the USD’s purchasing power has dropped sharply since 1955, while Gold has risen exponentially against the greenback, particularly after the end of the gold standard in 1971. The main reason why the US reserve currency has suffered a lot over the past 5 decades, in particular, is that the central bank, also known as the Federal Reserve, can theoretically print as much money as it likes. The activity has particularly witnessed sharp spikes around the time the US entered major military escalations.  Instead of raising taxes or…