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Old 05-07-2010, 05:30 PM
Tallenn Tallenn is offline
Sarnak


Join Date: Mar 2010
Posts: 295
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Fiat currency is not strictly limited in supply, it's supply is increased every time a bank makes a loan. It's value then of course goes down as the supply goes up (this is why inflation exists). The only thing stopping it from being completely unlimited is that the banks must have a reserve typically of 10% of whatever they loan out.

The supply of gold isn't strictly limited either, but it's supply increases very slowly, as it is mined from the ground.
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