Officer, Bulworth Cavill, Darren discussed on Know Your Risk Radio

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Investment officer if bulworth cavill on them ripped though currencies bitcoin the area but he has more because of her to these darren have you heard a lot about this echoing bitcoin i was like to run things off darren he's our resident millennial and a wizard behind the board's here um so cryptocurrencies and it i'd like to give you an anecdotal story of why i'm i'm we haven't talked a lot about that despite my interest in the subject i i was i found it really fascinating when when we first found out i i started tracking cryptocurrencies and and keeping an eye on him back in two thousand nine in a for several different reasons the biggest reason was because of something that we talk about on on the show quite a bit which is fiat currency in the inflow so you don't know fiat currency is a currency whose value is basically determined in bullied by the fact that some powerful entity says it so it's something that's not backed by value so prior to 1971 when the united states went off the gold exchange we were not a cryptocurrency excuse me we were not a fiat currency we're a currency backed by gold um and and look at it it's i think when you say fiat currency there's an attitude out there that you you or have a tinfoil had on and you're a conspiracy theorist in you think everything's going to end in the world's no it's but that's what you call it right the us collar is a fiat currency the chinese renminbi tonguetwister is a fiat currency the euro is a fiat currency in actually the renminbi a little bit less so because they do have some gold holdings and but it's not backed by anything right those gold holdings or not something that guarantees the value of the currency neither with the euro neither certainly now with the yen but it's a world of fiat currency and will and when you're when you're managing your balance sheets in a fiscally responsible way being a fiat currency is not necessarily a bad thing but like anything else in life every fiat currency we've ever seen in history they don't manage their balance sheets in a.

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