What you think is a dollar, isn’t a dollar. That green piece of paper in your wallet is a note. A Federal Reserve note.
What’s a note? It’s a promissory note. What’s a promissory note? It’s an IOU.
You’re holding a promise from the Federal Reserve to pay you a dollar.
What’s a dollar? A dollar is a one-ounce silver coin. They used to be called Thalers for the German region where they were once minted. Thaler became ‘dollar’ in English.
That green piece of paper is a promise to pay you a one-ounce silver coin. But really it’s not even that. Because Federal Reserve won’t ever pay you that silver dollar. So it’s really just a promise to do nothing.
We pass around Federal Reserve promises (to do nothing) as money and the term ‘dollar’ in this case is just a measurement of the buying power of that note.
If you think bitcoin is odd, I think you’ll see it’s less odd than federal reserve promises (to do nothing).
A one-ounce silver coin is currently worth 25 federal reserve dollars. This means that since the inception of federal reserve, the value of the federal reserve promises/notes has decreased by 96%! They used to promise to pay you the equivalent of 25 dollars, whereas now they promise to pay you one dollar.
I know this might seem confusing, but the point is that if you had a federal reserve note for one-dollar in 1913., you had actually 25 of today’s federal reserve dollars. Now you have one of those federal reserve dollars.
And this is why the system was created. To take your wealth. Every time they create more notes/promises, they take the value of your notes/promises. It’s like stock fraud where a company issues more stock but does not provide more stock to existing stockholders.
The solution is to allow people to use anything they want as money.