Time’s Up for Euro, Dollar and All Centralized Paper Money!
Just before the Civil War in the U.S. there were around 8000 different local currencies in use(Smithsonianmag, 2012). Also unlike today, two neighbor countries weren’t supposed to use U.S. Dollars to trade with each other back then. Actually, it wasn’t until 1914 that The Federal Reserve Board issued the first federal note in the form of a ten-dollar bill (Investopedia, 2019). It must be the humankind’s short-term orientation that we feel like there can’t be any money and monetary policy without central banks and an all-seeing government regulating it.
Let’s admit it! Something is not right here!
Today, Covid-19 has hit us pretty hard both in health and economy, but it was already before that a search for an alternative monetary system has begun. The financial crisis in 2008 has revealed many faults of the existing system. Something was obviously not right back then as well, yet all the banks which caused the crisis, to begin with, thanks to their endless greed, has been awarded and bailed out by non-backed U.S. Dollars, Euros, etc. and even most of the bank CEOs kept their seats by putting the blame on a couple of scapegoats.
I don’t claim that the banks didn’t improve their KYC’s, didn’t start doing better due diligence when issuing a loan, or didn’t reduce their risk appetite not have the same crisis again, but this was not just about banks anymore. Since 2008, the financial injustice between different socio-economic classes kept growing, the government kept bailing out failed enterprises with taxpayers money and in this latest crisis, all central governments got in a race to print an unlimited amount of money to announce bigger stimulus packages than the others.
The first working digital money experiment: Bitcoin!
I won’t get into the details of Bitcoin here, but it’s fair to admit that it has been the first successful and functional digital currency experiment. Since its white paper was submitted in 2009 for the first time, it was able to show that…