The Great Monetary Transition
Money tomorrow will not work as it does today.
Here is how we got here and what is coming:
1. The Age of Gold
600BC - 1913
People across the world used gold & silver as money. They were:
- Issued in a decentralized way
(anyone could mine money) - Hard to inflate
(you had to mine gold) - Counterparty-free money
(if you held it, it was truly yours)
2. Transition from Gold to Central Banking
1913 - 1971
The US Central Bank (CB) started a transition period. Money became:
- Centrally issued banknotes
(only CBs could issue) - Partially backed by gold
(CBs started to inflate money) - Dependent on a counterparty
(CBs could confiscate all money)
3. The Age of Central Banks
1971 - 2009
Banks nationalised money & issued 200 fiat currencies:
- Centrally controlled & managed
(only CBs can issue fiat) - Infinite ∞ inflationary money
(they say inflation is "healthy") - Dependent on a counterparty
(CBs can confiscate all money)
4. Transition from Central Banking to Bitcoin
2009 - 20??
Bitcoin started the transition to digital gold-like money.
This could be a smooth transition, but it will likely be messy.
Small fiat currencies will go to zero...sometimes very quickly.
USD will likely survive the longest of all fiat money.
5. The Age of Bitcoin
20??
People worldwide will use one money: bitcoin. Like gold, it is:
- Issued in a decentralized way
(anyone can mine bitcoins) - Impossible to inflate
(nobody can print bitcoins) - Counterparty-free money
(if you hold it, it is truly yours)
Get ready for the Age of Bitcoin
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