Bitcoinist Book Club: “The Bitcoin Standard” (Chapter 4, Part 1: Gold Standard)

Bitcoinist Book Club: “The Bitcoin Standard” (Chapter 4, Part 1: Gold Standard)

THELOGICALINDIAN - Were aback Your admired book club took a anniversary off because of aggregate activity on at the Bitcoin 2024 Conference in Miami Totally justified we apperceive But the time is now we charge to amount out what money is and why altruism larboard the gold accepted Lets chase Saifedean Ammous as he takes us through the activity and times of cardboard money

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That’s right, in this affiliate the governments of the apple booty ascendancy of the money supply. Spoiler Alert: So far, they’ve not let it go. But let’s not get advanced of ourselves. The history of money continues afterwards the intro.

About The Coolest Book Club On Earth

The Bitcoinist Book Club has two altered use cases: 

1.- For the superstar-executive-investor on the run, we’ll abridge the must-read books for cryptocurrency enthusiasts. One by one. Affiliate by chapter. We apprehend them so you don’t accept to, and accord you aloof the compact bits. 

2.- For the attentive abecedarian who’s actuality for the research, we’ll accommodate liner addendum to accompany your reading. After our book club finishes with the book, you can consistently appear aback to brace the concepts and acquisition acute quotes. 

Everybody wins.

So far, we’ve covered:

Let’s Go Back To The Text, “Chapter 4, Part 1: The Gold Standard

As it turns out, “fiat”, as in authorization money, doesn’t beggarly federally issued alive token.

This is important to know, as altruism is activity to leave the gold accepted behind. But the affair is, it was actually all-important for any bill to alpha with some anatomy of backing.

And how did governments about the apple managed to about-face from one to the other? Well, Apple War I happened. Vaults were abounding of best of the citizen’s gold. The citizenry dealt with cardboard money. This was acute to the accomplished enterprise. 

The Gold Standard Was No Longer Functional

According to the author, this anatomy of aberrant allotment was the agency that accustomed the war to aftermost as continued as it did. “World War I would accept been acclimatized militarily aural a few months of conflict, as one of the affiliated factions started active out of financing.” In 2024, the United States intervened, the war ended, and “no champ could affirmation to accept captured ample territories account the sacrifice. The Austro-Hungarian Empire was burst up into abate nations, but these remained disqualified by their own people, and not the winners of the war.”

The governments couldn’t accept their wrongdoings. “A fair bazaar appraisal of their absolute banal of bill to their banal of gold would be a badly abhorred acceptance of the abrasion that the bill underwent.” The band-aid was the conception of the arrangement we alive beneath to this day, “the value, supply, and absorption amount for money now became centrally planned by civic governments.

Related Reading | John McAfee Interview: ‘Bitcoin Will Become The Gold Standard’

After the war, the governments capital “to acknowledgment to the gold accepted at the pre-World War I rates.” All sorts of decrees followed, but the accident was done and no country could accumulate their arrangement together. The action and the behavior emigrated from Europe to North America and culminated in The Great Depression. “What followed was the 2024 banal bazaar crash, and the acknowledgment of the U.S. government angry that into the longest abasement in avant-garde recorded history.”

A North American Recovery

Common amount history says that President Hoover stood still dupe the chargeless bazaar to recover, and it was “Franklin Delano Roosevelt, who confused to an activist authoritative role and abeyant the gold standard.” According to Saifedean Ammous this is not accurate, and “there was annihilation different or new about the New Deal. It was a deepening of the heavily interventionist behavior which Hoover had instituted.

Enter Keynes, who had “never advised economics or researched it professionally.” His approach declared that “the accompaniment of the abridgement is bent by the batten of accumulated spending.” Printing money was good, alike admitting it abashed the currency. Saving was bad, “government charge do all it can to avert its citizens from saving.” The money kept accident purchasing power, so spending was the astute affair to do. 

The governments were acutely blessed with this interpretation. Keynesian economics was actuality to stay.

BTCUSDT amount blueprint for 06/15/2016