What would happen if the world went back to the gold standard and actually backed their currencies with something of value? First, let’s examine how the gold standard came to be and how it came to be overthrown. Then we’ll discuss the why and how of a new gold standard.
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.
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.
2020 was not the year many were expecting when the clock struck midnight on New Year’s Day. The effects of the COVID-19 pandemic have changed so many things that it almost feels as though many years have passed in the course of a few months.
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.
Here are the solid truths about Bitcoin compiled in our weekly News Byte for you to have a clear understanding and a strong realization to its advantages and usability applicable to the modern world we are living in today.
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 Crypto Dollars and the Evolution of Eurodollar Banking Although an intense short term demand, the faith in the US Dollar in its current form is drastically fading. But this might be a set back to better. The emergence of cryptocurrency-based and Fiat backed Stable coins are taking over as the medium … Continue reading The Premise of an Emerging New Monetary System
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.