We have heard much over the years about how we are moving toward a cashless society. Much like the paperless office that was once heralded as both imminent and inevitable, we have hit many bumps on the road to making this happen. Maybe we don’t want to part with cash as much as we think.
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.
We often hear about the national debt and the staggering amount of money it represents. But it’s not like we get a bill for it. We don’t directly pay our country’s debts, so the number doesn’t really hit home for us. That begs the question, how does your country’s debt actually impact you?
Many view Bitcoin as the currency of the future. Some also view it as a hedge against inflation, as gold has traditionally been seen. Is it fair to compare Bitcoin with gold? Or is this comparison based on faulty premises that simply do not hold up?
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.
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.