I am going to tell you something about money that you may not know, before learning crypto, learn a little about fiat money.

Have you ever wondered why every printed dollar was backed by gold before and is not anymore?

The US dollar stopped being backed by gold in 1971, during the presidency of Richard Nixon, when he ended the Bretton Woods system. This system, established in 1944, linked the value of the dollar to gold (with a fixed price of 35 dollars per ounce) and other currencies to the dollar. This decision, known as the "Nixon Shock", was made to address economic issues such as inflation, budget deficits, and a growing demand for conversion of dollars into gold, which endangered the US gold reserves.

Since then, the dollar has become a fiat currency, which means it does not have a physical backing like gold, but its value depends on the confidence that markets and governments have in the US economy. Currently, the dollar is backed by:

1// Confidence in the US government: The strength of its economy, political stability, and ability to meet its financial obligations.

2// Global role as a reserve currency: The dollar is the main currency used in international trade, in financial markets, and in the reserves of central banks around the world.

3// Military and geopolitical strength: US leadership on the global stage also reinforces the dollar's position.

4// Backed by economic production and taxes: Although there is no physical backing, the value of the dollar is tied to the economic power of the United States, which includes its GDP and tax collection capacity.

This transition marked a significant change in the global financial system, allowing for greater flexibility in money issuance, but also contributing to episodes of inflation and economic volatility in the subsequent decades.