We are a lucky generation. We did not only live in an era where the advent of the internet has revolutionized the way we communicate and do business, this is a generation that is seeing the reinvention of money, the return of money to its root. This is a generation where the power to print money is being taken away from the Central Banks and given back to the people. This is a generation that is seeing financial transactions take place between two individuals across time and space without a trusted third party. How much more can a generation get lucky?
A travel on the horseback of history will clearly see that money was a much later invention in the history of man. While this article is not intended as a history lesson, it is important to mention that money was only invented when man began to live in cities where division of labour became necessary and the need for him to exchange good and services with other members of the society arose.
Even at that, money began strictly as a private affair between the transacting parties who could freely decide on the terms and conditions of the trade as well as the means of payment and settlement. In that regard, a crude form of money known as the barter system occurred. This is the direct exchange of goods for goods and services for services. As crude as the barter system was, however, there was no need for a trusted third party for transactions to take place.
But as human civilization began to progress, other forms of money emerged. In Africa and Asia commodities such as seashells, beads, and salt were used as forms of money. Under this system, every society unanimously agreed on the kinds of money that will be accepted while every member of the society could mine or produce the money. There was no centralized authority that had the powers to mine or issue money.
This means that a man could go up to the sea to pick seashells which can then be spent. Or in another instance, a family could produce their bags of salt and it will be accepted as money by other members of the society. In a nutshell, the power to create new money was vested in the members of the society.
This is very different from the central banking of today. Under the present system, the Central Banks have monopolized the power to create money, forcefully taking it from the people. Today, any money that is not created by the Central Banks is regarded as counterfeit money. Unfortunately, the Central Banks have been known to always abuse the privilege of printing money. They often embark on money-printing spree that endangers the entire monetary system.
On top of this, the Central Banks have enthroned a strong culture of financial surveillance that takes away privacy in financial dealings between members of the society. The excuses? Terrorism, kidnapping, cybercrime, money laundry, etc. Therefore, it is expected that every financial transaction is carried out through the banks which now serve as a trusted third party.
Nevertheless, cryptocurrencies are changing everything about the way money has been used in the last century. For the first time in modern times, through the emergence of cyptocurrencies, the monopoly to print money has been taken away from the Central Banks. Also, it is now possible for individuals to send money across time and space without using trusted third parties and staying away from the peering eyes of the banks.
At any rate, we are still at the very beginning of this evolution of money that is being led by the emergence of cryptocurrencies. Yet, at this stage, the question has gone beyond whether or not cryptocurrencies will survive the test of time. Rather, the question has become to what extent will cryptocurrencies reshape the future of money, central banking, and our financial lives as a whole.
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It is ironic how one can be in a country and not be affected by its economy, thanks to cryptocurrency. Today with a little time and monetary investment I can have my token.
The future is shaping up nicely and a lot is uncertain esp in regards to the future of fiat. The irony is that a lot of people are even still not aware of this ongoing change.
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One can only pity such people, those who are oblivious of what is taking place. The unfortunate thing is that their ignorance will not even slow down what is taking place. It might be too late when they get out of their slumber.
Money should be in the hands of the people and not just a central power. Getting back to that is as natural as breathing fresh air once again.
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Yes, true. It will only take a much shorter time before the powers that be comes to terms with the present reality- the end of the monopolization of money printing.