Dwain Northey ( Gen X)

There are comparisons being drawn between Nixon, taking America off the gold standard and cryptocurrency, but in reality, they are very different.

Similarities Between Nixon Ending the Gold Standard and Cryptocurrency:

Detachment from Physical Backing: Gold Standard (pre-1971): U.S. dollars were backed by gold. You could theoretically exchange dollars for a fixed amount of gold. Post-Gold Standard (fiat money): After Nixon, the dollar became fiat — its value is based on trust in the government rather than a physical commodity. Cryptocurrency: Most cryptocurrencies, like Bitcoin, are also not backed by physical assets. Their value is based on market demand, scarcity, and trust in the code and decentralized system. Shifts in Trust: Both events reflect shifts in where people place trust: From gold to government (Nixon’s change). From governments to decentralized code or networks (crypto). Debates About “Real Value”: Critics of fiat money argue it’s “just paper.” Critics of crypto say it’s “just code” or speculative. In both cases, the question becomes: What gives money value? (Answer: collective belief and utility.)

Key Differences:

Control: Fiat Money: Controlled by governments and central banks. Cryptocurrency: Decentralized (in theory). No central authority. This is a major ideological split. Policy Motivation: Nixon’s move: Geopolitical and economic — mainly to stop gold outflows and inflation pressures from the Vietnam War. Crypto movement: Emerged from distrust in traditional financial systems, especially after the 2008 financial crisis. Legal Tender: U.S. Dollar post-gold standard: Still legal tender; everyone must accept it for debts. Cryptocurrency: Not legal tender in most places. Use is voluntary and subject to regulation. Adoption and Risk: Fiat currency, post-gold-standard, is widely accepted and stable (relatively). Cryptocurrency is still volatile and not universally accepted.

Bottom Line:

Nixon taking the U.S. off the gold standard and the emergence of crypto both represent major philosophical and structural shifts in what money is and how it’s valued. One moved us from commodity-backed to government-backed money; the other challenges that system by removing government backing entirely.

Let me know if you want a visual timeline or chart comparing them!