The news is by your side.

- Advertisement -


0 2

Get real time updates directly on you device, subscribe now.

The history of money is characterised by its failures. Inflation, dilution,
debasement, clipping, re-coining, and creation of new tokens worth less
and less all appear frequently. The theme with money seems to be that
whatever form it takes, it gets watered down either through debasement
or by excessive creation until a certain limit, then there is a reform.
The rate of monetary debasement seems to have increased, and the latest
experiment in debasing is that of QE. Currency pegs are difficult to
manage unless backed 100% with reserves, and although they can be
successful for some time, they mostly eventually fail.
successful for some time, they mostly eventually fail.
Is fiat currency the best solution to money? Will fiat money, backed by
the full faith and confidence that people have in today’s governments,
continue to survive? Who knows. Some believe that we have some new
challengers in the form of cryptocurrencies. The narrative from
policymakers has shifted from ignoring cryptocurrencies, to stating that
they are not a threat to economic stability, to discussing a potential
threat. A chapter in the BIS Annual Economic Report52 published by the
Bank of International Settlements in Jun 2018 reads:
A third, longer-term challenge concerns the stability of the financial system. It remains to be
seen whether widespread use of cryptocurrencies and related self-executing financial
products will give rise to new financial vulnerabilities and systemic risks. Close monitoring of
developments will be required.
Although we have arguably better tools and technology now than at any
previous point in time, humans are still humans and will still do what
they can to gain, and hold on to power and wealth—often making the
same mistakes as their predecessors.

Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.

Subscribe to our newsletter
Sign up here to get the latest news delivered directly to your inbox.
You can unsubscribe at any time

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More