Читать книгу The only reason why you don`t own Bitcoin is that you don`t know enough about it… - - Страница 5

There is no outcome in which Bitcoin would lose because the best money always wins due to natural selection and survival. Gold and silver won the millennia-long monetary war. Bills of exchange backed by gold, then crushed silver. Gold was then defeated by its leviathan, the currencies of nation-states. Now, Bitcoin is emerging as the alpha omega of money. It will strip all assets of their monetary premium. It has been happening for 15 years in a row.

Measure any physical resource in the world against Bitcoin and you will find that it has fallen in price against Bitcoin by 90—99% in that time.

And this is just the beginning! Bitcoin hasn’t started sucking the air out of higher assets yet.

Fig.3 Correlation of the dollar and bitcoin exchange rate

The longer the chart, the worse it looks for the US dollar.

usdebtclock.org. This link shows the US debt online.

Fig.4 U.S. National Debt

It is a logarithmic graph, so the fall seems not so sharp. But we can see that the dollar has depreciated by an order of magnitude against bitcoin.

Fig.5 Historical USD/SAT indicators

Consider the chart in Fig. 6. It shows the cycles of every main reserve currency worldwide. And it looks to be around 100—110 years. Given that after two world wars, the dollar replaced the pound sterling as the world’s primary currency, we can conclude that we can prepare for a change in primary reserve currency.

Fig.6 Graph of the transition from one reserve currency to another

If we look closely at this graph and remember what happened when one reserve currency changed to another, we find that it did not happen by itself. It was always accompanied by the extinction of the issuing state* of the currency, by war, or by its ruin. In all cases, the next reserve currency in the world was chosen to be the one whose country benefited from the war, as it became more powerful, and its money began to be in high demand.

«Bitcoin is about property rights. It is the technology to provide property rights to eight billion people for the first time in human history. And that’s life, liberty and property» – Michael Saylor.

Saylor explains that half of the world has no hope of accumulating property while the other half takes risks with their property. Bitcoin is a technology that gives everyone the right to personal sovereignty and their own property.

Trust is more expensive than gold

The complete abandonment of the gold standard occurred between 1976 and 1980, when all countries, including the United States, gradually abandoned the gold standard, allowing their currencies to float freely in international currency markets.

If we had still used the gold standard, the economy and financial system could have had some differences. For example, a limited supply of gold could limit the expansion of money supply and economic growth.

A more predictable and stable monetary system based on a limited supply of gold could provide more confidence and trust in the system. However, the limitations of the gold standard would create problems in situations requiring rapid mobilization of resources or response to economic crises.

These concerns led to the final abandonment of the gold standard and the transition to a system of fiat currencies, where the value of money is determined by supply and demand in the market. The gold standard had its pros and cons. One of the pluses was the restriction of the state in the flexible management of the country and the prohibition of the possibility of getting money from nowhere.

Occasionally, there were situations where a shortage of gold or an excess of gold led to economic problems. For instance, if the country needed a major construction project and the treasury was short of funds, with the gold standard, the government could not simply print money. Instead, it had to suspend construction until the required amount was accumulated. Also, if the government started a war and the citizens were against it, they could cut back on consumption, and the money would stay with the people. It caused difficulties for the insolent government in financing the war effort.

The gold standard also limited the ability of governments to control the economy and manipulate money. It could also prevent the destructive influence of politicians and government. At the same time, the gold standard gave the population greater financial independence and incentivized the preservation of valuable ideas and innovations without the risk of government impairment. However, history has shown that the gold standard had limitations and led to a shift to more flexible monetary systems.

Today, we are seeing the development of new technologies, such as cryptocurrencies, that offer alternative approaches to monetary policy and financial stability. These innovations open up new economic and societal opportunities but also come with certain risks and challenges.

In this way, the history of the gold standard reminds us of the complex interrelationships between government intervention and economic development. The world is constantly changing, and we are learning from the past as we strive to create more flexible and sustainable systems that meet the needs of today’s economy. BITCOIN itself is a tremendous combination of sections of academic sciences and disciplines such as economics and finance, programming, and financial law. Therefore, even with a 2, 3, or 4 educations, a person will not understand the essence of Bitcoin at once.

One of the most important features of Bitcoin is that it is a currency that has not been known in the world before. It is an entirely new part of the economy, and currently, no single focused education process delivered professionally can explain what Bitcoin is.