Money is an ancient invention of the market, that is, of that space in which men are marketed and have exchanges of goods and services. But it is an invention of which the States are appropriate and, as often happens, they did it in the most convenient way for them and most disadvantageous for others, that is, for their subjects.
For this reason, States impose their money by law (for example the Dollar and the Euro) and do not let the market choose which form of the best money, the so-called healthy money, that is healthy money, a concept that few know .
As history shows, state money has very high social costs because by its very nature destined to fail. And this for a simple reason: those who administer the state cannot resist the temptation to print more than they should.
From the Roman Empire to Venezuela
Obviously in schools this story is not told, yet it would be enough to look at the past to verify it: they have happened since the time of the Greeks and Romans. For example, the uncontrolled printing of coins by Nero, Caracalla and above all Diocletian, were important factors for the division of the Roman empire; and while a Rome reigned the "devalued" currency, a Constantinople was still aiming for gold-based coins that guaranteed another 1000 and more years of history throughout the Byzantine Empire, while the Western Empire was shipwrecked.
Coming in more recent times we have sensational stories to say the least about the hyper-printing of paper money: the most famous is monetary inflation seen in Germany in 1923 during the Weimar Republic, with the banknotes being carried with the wheelbarrow, but given that he insists on not studying history, everything is revised around 2000 in Zimbabwe, and finally in 2013 in Venezuela.
Going back to our times
Today QE (quantitative easing) and other unpronounceable acronyms that the monetary authorities of Europe, the United States, Japan, etc. they are invented, they are the repetition with more high-sounding names in the same story: to print much more money than the economy needs to function.
Even if in the short term it seems a sensible and necessary measure for the circumstances, printing too much money proves in the long term almost always a bankruptcy choice because like drugs, it is a process that is difficult to reverse and indeed requires the financial system to always dose greater to survive, until its end.
In recent weeks the world central banks, under the pretext of the virus, are once again attempting to use gasoline to extinguish the fire that they themselves created by eliminating interest rates. Not to mention the whole series of previous releases to buy government bonds & C. with "QE-but-don't-call-QE" operations because otherwise we scare the markets ...
Central Banks now know how to do only one thing, to print huge quantities of new money; on the other hand, if the only thing you have is a hammer ... you will start to treat all things as if they were nails.
Bitcoin is a powerful alarm clock on these issues and opens the door to a series of concepts and ways of seeing the world totally different from what we are used to, almost to the point of dizziness.
For all this it is not necessary to buy it, you just need to know it.