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Fiat money is not a fully functional currency, but a monetary system maintained by state credit and coercive power.
"The Future of Money: From the Gold Standard to Blockchain" argues that fiat money is not a true "sound money." Although it can still serve as a medium of exchange and unit of account, its ability to be issued without limit weakens its long-term store of value capability, preventing it from fully fulfilling the functions of money. The author believes that store of value is the most important function of money, and that Bitcoin and gold better meet this standard.