A Brief History of Modern Money

[JariKriting]

bitcoin is mondern money
you use bitcoin you can send money in the world is easy , fast and very low sending fee
but bitcoin to the real money still very dificult without physic and without regulated to the real money

[1713491089]

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[1713491089]

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[1713491089]

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[1713491089]

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[BobK71]

bitcoin is mondern money
you use bitcoin you can send money in the world is easy , fast and very low sending fee
but bitcoin to the real money still very dificult without physic and without regulated to the real money

I feel that this is a true observation, unfortunately.

But like gold, the major argument in favor of Bitcoin as an investment is the actions by the elites themselves.  They will not want to totally destroy trust in Bitcoin (or gold) because some day they might need it to anchor the world's trust in the paper money and debt they issue.  (I.E. when things get bad enough for them, they will want to go (back) to a gold or Bitcoin standard, whether it looks on the surface like the old gold standard or not.)

When trust is really lost in the assets they issue, there will be hell to pay for the top bankers and central bankers, since the politicians will direct the public's anger (from the economic pain) to those people only, in order to deflect anger from themselves who were an integral part of the asset inflation originally.

This was what happened during the Spanish Inquisition.  Since top bankers and central bankers are thus totally scared of a true hard landing, they will want the option of a gold, silver, and/or a Bitcoin standard to be available at all times.

Maybe, the recent all-out attempt by some political groups to whip up the public about either Russian hacking in favor of Trump, or Trump's appointment of so many Goldman Sachs alumni, was a test of the strength of the Spanish-Inquisition type of purely political force, in case it will be needed (a scenario a Trump presidency will definitely make more likely than a Hillary one!)

But which standard, gold, silver, and/or Bitcoin?  That is an interesting topic in itself that I hope to explore at some point.

[BobK71]

I have been reading the word "bubble" and I am thinking, if the elites have been able to print money out of thin air to meet up with flagrant lifestyles, what is going to happen in future to stop them from continuing the trend, what will make the "bubble" burst when the elites don't want it to burst?

That is a very good question.  I hope I will have more time and respond (again) in more detail, but the short answer is that the global imperial system depends critically on the trust in the assets they issue, including money.  They don't have enough power to force people worldwide to accept their money.  In the global system, the only reason one single country can stay on top of the world is to use a combination of hard and soft power, and the soft power comes mostly from savers trusting in the purchasing power of the country's money.  (This is why the Fed is so eager to raise rates at this point, if it can.)

Another, related, idea is that the imperial power is able to enjoy its reserve currency status partly because it has a relatively free market economy at home.  The more it prints money and debt and uses state power to prop them up, the more distorted and less productive its own economy is.

Not only will the bubble be more likely to burst, it will actually be in the imperial interest to let it burst, at some point.  History has shown that the process of deflation that follows a bubble burst actually strengthens the empire, by offloading most of the toxic problems to other countries, and by allowing the imperial center to reset its system and rebuild its strength.  It's painful, but not unsurvivable, and was more or less what happened during the Great Depression and 'Great Recession.'

[BobK71]

Nice piece of history in one post. I think the modern economy basically swings like a pendulum between good money and bad money. good money being decentralized money, like gold, silver, even shells at one stage. Bad money, is simply fiat.

And bitcoin is an example of a good money, I'd expect it to be adopted in a mass scale in future.

Thank you.

My view of good vs. bad money is that decentralized money gives no power to anyone, whereas centralized money (fiat money, public debt, too-big-to-fail bank debt) is designed to benefit the elites (though sometimes will also benefit a big population, in order to gain support by by bribery) by giving them the power of issuance.

The problem of power-money is not just that the elites issue money freely and then break their promises by inflating it away (though that does happen,) but that the elites have all sorts of incentives to corrupt every institution of society in their effort prop up the value of their money, by deceptive means.

Among the most famous examples was Britain's acquisition and exploitation of colonies.

[joms07]

A brief history of money.. Chocolate coins, gold coins and other ... These are all traditions that carry on even though modern coins are worthless metal.

[ginika]

after the emergence of paper money, the history of money continues with the existence of modern money. modern money that exist today has several types, such as deposits, checks, current accounts and others. now this means of payment not always by using money physically, when shopping goods now we can use other means of payment such as credit cards.
the longer the history of money development has progressed considerably. money and payment instruments are growing rapidly. with the development of history, humans increasingly facilitated in using it. even with the bank as a medium to save money and send it.

[BobK71]

after the emergence of paper money, the history of money continues with the existence of modern money. modern money that exist today has several types, such as deposits, checks, current accounts and others. now this means of payment not always by using money physically, when shopping goods now we can use other means of payment such as credit cards.
the longer the history of money development has progressed considerably. money and payment instruments are growing rapidly. with the development of history, humans increasingly facilitated in using it. even with the bank as a medium to save money and send it.

This is all true.  Unfortunately, public awareness of key monetary concepts is still in the stone age (and this is probably by design in one way or another) while financial innovation is ever growing.  Not good.

[Unsmart boy]

It is easy to pay bills with a payment credit card or PayPal without paying, it makes it easy to buy something online and I agree with you on this policy. I hope many more business owners in the future will accept their payment through bitcoin. Bitcoin in the near future and probably we are living in the future. Bitcoin is always good at the time of international transactions. For other credit cards, low cost food is low, but the amount is very high.

[BobK71]

In the US, for instance, the federal government includes the President and Congress at the top of the hierarchy. Congress authorizes taxing and spending measures. Below this level are the Treasury and Federal Reserve (central banking system).

The Federal Reserve system is a separate 'arm of the government' altogether.  Technically, it's not even part of the government, as it's privately held (though many central banks around the world are held directly by the government.)  The Federal Reserve is supposed to operate independently of political pressure, thus its separation from the rest of the government.

[ronics]

the Bitcoin for me is the best of all the crypto in the world because if you need to send money anywhere in the country and also depreciate on receiving bitcoin in the country is very unic really or do you want to buy anything in an online , can be done with bitcoin. There are hundreds of stores for 24 hours that Bitcoin accepts worldwide, and because its fees are easy to pay. you can get a low rebate when you choose to use a Bitcoin to use your credit card.

[shinharu10282016]

Who are the elites everybody talks about? Rich people?

Most rich people weren't born rich. That's the part that all these theories about an oligarchy leave out. Some rich people were born rich. But most rich were born non-rich, and are overachievers who became rich.

Overachievers are more likely to be greedy. Overachievers are also more likely to hustle their way into power. That's just human nature. Some people always rise to the top. There isn't some big conspiracy.

So is society supposed to repress overachievers? Is society suppose to limit wealth, or limit the communication overachievers have? How exactly can an elite be prohibited?

They are rich people. And most of them are born with a silver spoon on their mouth. You will still consider the not oh so rich people that came up rich like Mark Zuckerburg because of their innovative ideas. Overachievers really tend to be greedy and I think that is not bad at all.

[BobK71]

after the emergence of paper money, the history of money continues with the existence of modern money. modern money that exist today has several types, such as deposits, checks, current accounts and others. now this means of payment not always by using money physically, when shopping goods now we can use other means of payment such as credit cards.
the longer the history of money development has progressed considerably. money and payment instruments are growing rapidly. with the development of history, humans increasingly facilitated in using it. even with the bank as a medium to save money and send it.

I am all in favor of innovation in money and finance.  I'm not in favor of governments or central banks having anything to do with it.

When they control money to any degree, the system is used to benefit top politicians and bankers at the expense of the public, who don't even know they're being played, most of the time.  This has been the experience of the last 500 years of the modern West.

[Bitfling]

Cryptocurrency is new invention in money history. Because of internet, cryptocurrency can exist and right now crypto become more popular than before and attracting many big institution to investing their funds. Money always evolve and i am believe crypto is future currency

[BobK71]

Who are the elites everybody talks about? Rich people?

Most rich people weren't born rich. That's the part that all these theories about an oligarchy leave out. Some rich people were born rich. But most rich were born non-rich, and are overachievers who became rich.

Overachievers are more likely to be greedy. Overachievers are also more likely to hustle their way into power. That's just human nature. Some people always rise to the top. There isn't some big conspiracy.

So is society supposed to repress overachievers? Is society suppose to limit wealth, or limit the communication overachievers have? How exactly can an elite be prohibited?

They are rich people. And most of them are born with a silver spoon on their mouth. You will still consider the not oh so rich people that came up rich like Mark Zuckerburg because of their innovative ideas. Overachievers really tend to be greedy and I think that is not bad at all.

The problem, of course, is not over-achievement.  The problem is that the system is rigged in favor of the top bankers and politicians.   The entire system we live in is based on theft and deception.

See how the system really works.