Leo@92 – If you are still following the first reason fiat currencies are here to stay is simply because no government can long resist the temptation to fund themselves with the printing press. We are currently doing it for a third of the federal budget so why not go all the way and stop taxing actual labor and production? Do not get me wrong I know there is no such thing as a free lunch and that there will be consequences in the form of inflation but we have that anyway. Why compound t with malinvestment caused by the tax code?

Another reason why fiat currencies are not going awa is because there simply is no commodity to replace it with and only limited ways to increase commodities that might be used to account for population growth and productivity increases. You would wind up with constant deflationary spirals. The money supply really does need to grow.