Money scarcity and why it matters
Money used to be scarce, and it mattered….why? Because without scarcity, there is no value.
Representative money as it was called, saw a fixed rate of exchange for gold reserves until 1971 when the “bretton woods” agreement was efficient terminated. Until this time, such monetary measures were in place to create a stable currency in which to trade on.
While some economists argue that a gold standard is not the way to a stable currency, I say NOT being pegged to something real is just the same. Governments were unable to “print” or create money supply without gold supplies first.
There is a problem with gold backing of a currency, probably one many don’t understand and that is failure to grow. If you cannot increase the money supply at times when economy growth is needed, how can one grow?
If you could imagine removing every single cent of wealth from every person on earth. Then redistributing the wealth EQUALLY amongst everyone. After little time, some would own more than others, some would have cars and other none just the same as we are now. This is because we have different needs and wants for money. Some people have experience in making more of it and others none at all with only consumeristic habits.
The truth is we needed to remove the gold standard for economic growth. The problem is it was removed an power was taken opportunity of. Many squandered the power through greed bringing forth the financial calamities we see today. Debt filled nations going bankrupt, hyper inflationary currencies and a middle class being destroyed.
Scarcity does matter, but so does growth and so a balance must be attained. This is why blockchain is so important to the new financial system. The banking elites understand the need for controlled programmable currency, a CBDC. If one could control the where’s, how’s and when the spending occurs before removing the circulating supply when the economic inhection is finished becomes 100% controllable through programmable scarcity
Imagine the government gives everyone $500. They spend those dollars, and as the dollars make it back to the nation’s treasury and central banks in the form of taxes etc, they burn them (programmable ofcourse). Thus removing the supply creating scarcity and maintaining a stable currency supply demand.
Sounds great right? Well with this, comes the ultimate power. The power to print and destroy currency at will. The power to control you where the money is spent and even giving an expiration date on the currency. Centralised control comes with alot of downsides and if history tells us anything, it’s that NO ONE group should control such important things such as currency issuance.
Cryptocurrency and defi offer the best alternative to Central currencies. The fear governments are giving the public is for one reason only. That is to scare you from Cryptocurrency. The reason, because if you find this out, you will take currency into your own hands and they lose control. I’d love to imagine a world where the public controls the public’s money. Still a possibility imo.
Good to be back, had the big C and it made me take a week off 😆 🤣
Thanks for reading 📚