Greetings crypto lovers , as perhaps some have noticed our world economy is usually very unstable and many politicians and economists have told us that it is normal due to the economic cycles of ups and downs, such things have only been seen in the recent period of humanity and it is not a coincidence that such problems arise due to central banking.
Central banks are entities born from the formation of the monopoly of money and in times when gold was used, the banks of those times accumulated capital due to their gold safeguarding services . The banks became huge and influential ended up influencing the policies of their countries of origin and in some cases abroad.
This system with the entry of banknotes that represented a certain weight in gold (gold standard) became more and more problematic, since those banks that had more and more power could print more bills than the peso in gold they had and an example of this is the Bank of the United States of 1791 (Bank of United States ) that had just 20 years of life dissolving in 1811 , along with another bank with the same name being founded in 1816 and going bankrupt in 1836.
In the case of the United States, with the bankruptcy of those two central banks and after the civil war, they had a huge period of economic boom as a result of the free market and the decentralization of the banks that competed with each other and that diminished the effects of the banks that Bankrupt because of their dishonest practices , it is not surprising that just before the First World War the United States went from being a secondary power to being a great industrial and economic power.
But in the end the banking centralization in 1913 of the United States together with the central banks of the European powers ended this period during the First World War, Europe was able to print the largest amount of banknotes without backing due to its unique conditions that it ended up bringing with it population impoverishment and inflation. The irony of all this is that without centralized banking such a war would barely last 1 year, since raising taxes to finance such a war would be enormously unpopular.
We went to the great depression, a consequence of overvalued banknotes from Europe and the United States that, due to the same banking centralization, these banks could not “fail” so they ended up being financed to survive, the doors of bank irresponsibility were opened to The cost of the common person and such irresponsibilities were only going to increase with the arrival of fiat money .
The arrival of the Bretton Woods system in 1944 after the great depression and the weakening of the other European currencies from the end of the first world war to the second caused the political and economic influence of the United States to reach a new peak, thus managing to value its coin at 35 dollars per ounce of gold, it is worth mentioning that it helped the fact that the US government forced its citizens to sell their gold in exchange for dollars (one of the biggest robberies in the history of the United States , but that is another theme). But such a pattern could not be sustained due to the economic recovery of European countries after the Second World War and the distrust of US banks to be able to back all their printed dollars with gold.
Before all European governments claimed gold in exchange for dollars in 1971 the Bretton Woods system was abandoned and in return the dollar would be backed by trust towards the US government , in other words the dollar would be valued for much more relative and would bring the following economic cycles that we suffer and will continue to suffer today and all thanks to the arrival of Fiat money.
Fiat money after all is money that is not backed by anything, it is only used because governments by force force us to use this paper money and the central banks that print it are privileged people who cannot "Lose" what caused the normalization of currency inflation to sustain this system , as banks print more money to finance their operations. L os saving currency fiat are the losers and irresponsible credit giving central banks to other entities and persons not able to pay, just because these banks know that "can not fail" is what we have with the arrival of the central banks and their creation called Fiat money.
With all of the above, cryptos are a good possibility to have a healthy economic environment, and in my opinion it is much easier to believe that cryptos will survive due to the large number of them and that if another crypto falls, it will fill the gap. , compared to believing in a fiat currency backed by a monopoly of banks that have too much influence and do not mind stealing taxpayers' money in case of losses.
