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THE PROBLEM WITH FIAT In reality, any money controlled by a central bank is not truly sound, when you consider the big picture. Generally speaking, governments have created monetary systems that allow them to manipulate the supply of their country’s money
Bitcoin’s beautifully designed characteristics mean it is poised to have an
impact in people’s lives in the most unstable economies (like Argentina and
Venezuela, for example), where the government heavily manipulates its money.
As a brief primer, countries like Venezuela and Argentina have experienced times
where their governments printed so much of their own currency that their
citizens were not able to spend it fast enough before it would lose value. This has
happened multiple times in each country and, as a result, their entire monetary
systems fell apart, and affected citizens had to find an alternative medium of
exchange.
People are entitled to freedom as a human right, and governments who ruin their
own money arguably take away their people’s economic freedom. Their access to
the same economic opportunities as the rest of the world is virtually non-existent,
and thus the greatest thing they desire is a currency that can’t be controlled by a
reckless central authority.
In 1912, Ludwig von Mises, a renowned Austrian economist, wrote in The Theory
of Money and Credit that sound money “has two aspects. It is affirmative in
approving the market’s choice of a commonly used medium of exchange. It is
negative in obstructing the government’s propensity to meddle with the currency
system.”
Details
- Publication Date
- Sep 26, 2022
- Language
- English
- Category
- Business & Economics
- Copyright
- All Rights Reserved - Standard Copyright License
- Contributors
- By (author): vaibhav kumar mishra
Specifications
- Format