According to Ludwig von Mises, the boom of the “Roaring Twenties” was the result of the US Federal Reserve Bank and its policy of easy credit. When it became obvious that the economic boom was built on sand, the economy crumbled.
Bitcoin revolutionizes the financial system like never before. The ability to process a payment transaction has never been easy, with almost low to no fees at all. Bitcoin does not require a third party to process transactions and does not rely on trust or to anyone with central control as it is decentralized in nature.
Originally, banknotes were nothing else than receipts for gold or silver that were stored safely in a bank vault. Carrying heavy coins was not very practical and quite unsafe, as street robbers could easily assault you.
Money has been an expression of value divisible in nature, durable, transportable, and scarce. Any object that carries these attributes can be called as money when used as a medium of exchange.
In Part One of this series we compared Bitcoin’s stock-to-flow ratio with that of gold, the world’s traditional safe haven. We have seen that Bitcoin’s scarcity by design is one of the main reasons why it could develop into a safe haven for investors in the near future.
We are used to money being issued and controlled by the state – but if we look at its history we see that money originates from the free market. Without money, a reasonable division of labor would not be possible.
One of the many well-known CEO in the cryptospace have manifested strong speculations that Bitcoin price will spike-up after the halving, and others have even encouraged people to buy Bitcoin before the halving happens.
In this series, Aaron Koenig introduces you to the Austrian School of Economics in an easily digestable way. You don't need to be an economist nor an Austrian to understand what Bitcoin has to do with this school of thought, which was founded in Vienna in the 19th century.
Today's Top News Byte Census Instagram Post Governments around the world are careening toward a period of dramatic spending. People around the world are seeking alternatives such as digital currency, Bitcoin and other cryptocurrencies away from the traditional paper currency that can be a cause of viral infections, and are easily manipulated in so many … Continue reading The End of Paper Currency
The abandonment of cash is buzzing around nations due to the infection risk spread in paper currencies which could carry a number of micro-organism that are fatal to human interaction and day to day money exchange amidst pandemic.