The Making of Currency

[CryptoBry]

If you've enough people with the same beliefs & values, you've got a currency. Speaking about the regular currencies, or fiat money (such as previously mentioned USD, GBP, or EUR), the most important thing to emphasize is that they are so powerful because people collectively believe that in case something goes wrong, the governments that issue these currencies will sort things out (we all know how many times the central authority (government/Central Bank) has failed to do so which is now leading us to the new paradigm

Yet, the times are changing, and hence our beliefs as well. The shift of trust and beliefs can very well be illustrated by the emergence and spread of cryptocurrencies (especially Bitcoin and Ethereum), or blockchain technology as such.

Taken from here...

What is getting clear for us now is that the rise of cryptocurrency stemmed from the failures of the government to do its job well. There are now many people who are looking for an alternative that will get them back the power that actually belongs to them. This is one aspect why cryptocurrency can really be revolutionary and innovative as well as why the disrupted are now taking a good fight to challenge cryptocurrency calling it by many names.

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[posi]

If you've enough people with the same beliefs & values, you've got a currency. Speaking about the regular currencies, or fiat money (such as previously mentioned USD, GBP, or EUR), the most important thing to emphasize is that they are so powerful because people collectively believe that in case something goes wrong, the governments that issue these currencies will sort things out (we all know how many times the central authority (government/Central Bank) has failed to do so which is now leading us to the new paradigm

Yet, the times are changing, and hence our beliefs as well. The shift of trust and beliefs can very well be illustrated by the emergence and spread of cryptocurrencies (especially Bitcoin and Ethereum), or blockchain technology as such.

Taken from here...

What is getting clear for us now is that the rise of cryptocurrency stemmed from the failures of the government to do its job well. There are now many people who are looking for an alternative that will get them back the power that actually belongs to them. This is one aspect why cryptocurrency can really be revolutionary and innovative as well as why the disrupted are now taking a good fight to challenge cryptocurrency calling it by many names.

You're right OP. Economic crisis happening there and there and currency loose value while people need something which will fix the financial problem. This is the main reason why bitcoin was created by the Satoshi Nakamoto group.

[hase0278]

You're right OP. Economic crisis happening there and there and currency loose value while people need something which will fix the financial problem. This is the main reason why bitcoin was created by the Satoshi Nakamoto group.

Satoshi Nakamoto really didn't intend for bitcoin to solve economic crisis happening in the world now. What the creator of bitcoin intended for it to be used for micropayments daily to ease people's long distance sending and receiving of money. I agree though that the making of crypto somehow stems indirectly from the failure of the government to do their jobs well.

[kimochidesh]

Rise of BITCOIN is people belief in it. People adopt BITCOIN because it is decentralized and protect their privacy of transaction. Also, they can make easy and fast payment with low transaction fees especially across countries. If we collectively have rigid belief in BITCOIN, no power can stop this revolution.

[pitham1]

The founder of 21 Balaji Srinivisan put it very succinctly in an interview.
If 50 people gather in a room, close their eyes and say let X fly, this won't happen.
If 50 people gather in a room, close their eyes and say let X have value, then X suddenly will have value.
Currency is only as valuable as the people who believe in it.

[Hydrogen]

What is getting clear for us now is that the rise of cryptocurrency stemmed from the failures of the government to do its job well.

The worldwide banking industry being centralized within a system of central banks could imply a lack of competition.

This lack of competition could induce industry wide stagnation, lack of progress and advancement. The centralized banking industry might be described as existing under a form of economic protectionism. It has been sheltered like a tiger kept in a cage which loses its survival instincts. These conditions also open the door to bitcoin and other innovative technologies to fill the vacuum which has been created.

There could be yet another case for decentralization here as well. Dysfunctionality on the part of states is another good argument and case for decentralization as well. In many countries we often see the greatest progress in legislation being made by decentralized states who are free to act without the interference of international banking cartels.

[alani123]

Why is it that governments aren't doing this job well? Countries can thrive where organizations make it for corruption to be against the interest of a government. On the other hand, countries with a lot of corruption fail to distribute wealth through capitalism due to centralization of wealth to the few fortunate having good ties with a government. Bitcoin can do well under a system of government.

[Hydrogen]

Why is it that governments aren't doing this job well?

Ronald Reagan may have said it best.  



The way political systems are structured, world leaders can't survive in politics without selling out their morals and values to the highest bidder.

Political success is wholly dependent upon money. Campaign contributions. Advertisements. The system has devolved into a "how low can you go" race to the bottom where the most successful politicians are the ones most enthusiastic and successful at selling out their own people to the self interests of ruling elites.

You can see it happen in elections. The candidates with the largest campaign contributions always win. Donald Trump is the first candidate in a very long time to get in office despite having received far less in funding than his opponent. The most successful politicians aren't the ones who do the most to help the public or fuel humanitarian causes. The most successful politicians are the ones who manage to secure the most money.

All of this isn't that obvious to most. The media and politics acting in conjunction creates a type of unified front which create an illusion that the system isn't broken. As time passes however and circumstances grow more dire, the facade will fade.

[panju1]

Why is it that governments aren't doing this job well? Countries can thrive where organizations make it for corruption to be against the interest of a government. On the other hand, countries with a lot of corruption fail to distribute wealth through capitalism due to centralization of wealth to the few fortunate having good ties with a government. Bitcoin can do well under a system of government.

Those kind of corrupt countries bring a bad name to capitalism. What they follow is not capitalism, its is crony capitalism.
Some governments are doing this job well; it is just that Bitcoin improves on what they are doing.