If we look back at history, we can see that the collective mode of thought has changed. During the earliest civilizations, there was one king or monarch who was the sovereign of the state. Putting the entire power of society in the hands of one person is not the best option since power can corrupt a soul.
Eventually, that shifted from a single person to a council where people could vote by expressing their opinions. During the last few centuries, we’ve all adapted to the way of thinking that every human being is sovereign about their own future, and every person is innocent until they’re proven guilty.
Now, let’s look at the relationship that the sovereign states have had with money during these times. The first stable money representation was gold since it covered all the bases that a currency needs to have. You can move it from one place to another.
It lasts long, and it can’t corrode like other metals. It can be easily recognized by anyone. Gold is also divisible into smaller parts. Finally, the most important thing about it is that it’s scarce. Whenever you have something that you can inflate or artificially create, the urge to do so becomes stronger than your moral grounds.
That’s the most crucial feature that money needs to fulfill. Well, governments and central banks have always wanted to put their fingers into the mix and control the movement and the production of money. A couple of thousand years ago, you could trade with another person without anyone keeping an eye on whether you’re doing everything correctly.
Instead of having trust in the people who use the currencies, the state wanted to take all of the responsibility away and exchange the real deal for paper certification. Whenever a monopoly takes over, the faith of the people is lost. Click on this link to read more.
At the moment, the holders of the most gold are central banks, and they’re the institutions that are supposed to investigate whether someone else is counterfeiting money. But on the other hand, they’re printing trillions of dollars at a practically zero cost disadvantage.
How did it all start?
Every country has a currency of its own. The United States has the dollar. Japan has the yen. Most European countries use the euro. When you look at their history, all of these countries made a promise to their people that they’re going to give them paper fiat currencies which represent value.
In fact, value is not something that can be exchanged for gold or anything else. We can think of fiat money as an unfulfilled promise. Since nothing is linked to the dollars we’re using, printing money has dire consequences.
Any tool can become a weapon. You just need to know how to use it. That’s why governments are still imposing wealth inequalities, the divisiveness of the people, and inflation. One of the best tactics to quickly defeat another nation is hyperinflation.
That’s what Germany wanted to do to England during the Second World War. They wanted to create thousands of counterfeit bills and then issue them in circulation. Well, the same thing is happening today but at the hands of our own states.
The regular rate of inflation that a society can tolerate is 2 percent. If you look at the numbers, the projected inflation rate for this year is going to be 7 percent. If you have a hundred thousand dollars in the bank or in your savings account, you’re going to lose 7 000 bucks.
The dollars will still be there, but their buying power will not be the same. The free market always wants to return to the best possible solution, which is gold. However, since all countries exited that standard almost 50 years ago, the superior alternative at the moment is Bitcoin and other cryptocurrencies, which will revolutionize monetary economics.
What can you do?
Most people are worried about their future. The past year showed that everything could change in a couple of days, and the pandemic put a halt to the entire economy. So then, what can you do to ensure a stable future? Almost everyone thinks that having a 401k is enough for a good retirement.
If they’re capable of putting aside extra money, they’re also investing in stocks and bonds. But when the dollar crashes, the stock market is right there beside it. The only thing that skyrockets during times of uncertainty is gold and the virtual equivalent, which is Bitcoin.
Even though the cryptocurrency space is trendy at the moment, and you might be tempted to strike it rich, it’s important to only invest in projects that have a bright future. The PKT cryptocurrency movement can help you earn extra money without changing anything in your life, apart from installing a device that will use a bit of your internet.
The philosophy behind it is that internet service providers are working in the same manner as central banks and governments. They set their own prices, and they can be subject to regulations since no one that works for the state is equipped to perform the technology checks. For that reason, they have a monopoly over the data and the bandwidth.
They can change prices collectively since they’re the ones in charge. This project aims to change that and give people free access to the internet. That seems like a great idea, but a lot of people are needed to install nodes and verify transactions on the blockchain.
It works in the same way as Bitcoin, meaning that it’s a proof of work system. The miners will need to validate blocks, and they will be rewarded with tokens and coins that can be exchanged for real money. Essentially, you’ll be able to pay your internet bill by renting out your unused bandwidth.
No one is scrolling their feed while they’re sleeping, and that will be enough to cover your expenses. The world of crypto is giving everyone an equal opportunity to have a better future.