The quality of money is important. We use them daily, but are they really the best option we can use to pay the bills?
Let’s take a look at if there is any better way to own and use money.
Hierarchy of money
The reasons why the monetary system is closer to socialism rather than the free market are as follows:
- the system is run by one institution, the central bank, and when a crisis or accident occurs, the solutions are mostly very short-sighted;
- above all, there is a state monopoly and money is created on the basis of the state debt.
These are the characteristics of the system we are currently in. It seems a bit that this system doesn’t care about normal people at all. This system is applied everywhere around the world and in every state.
Given that unlimited printing of money is a stable demand for government bonds, and as a result, the government can be sure that there will always be unlimited demand in the market. Pretty smart, isn’t it? In addition, after the crisis in 2008, quantitative easing was added to the game.
It was supposed to be a one-off event in 2008. Unfortunately, this is still happening until now, and this year the amount of this money is huge. Each central bank buys government bonds. It was supposed to stabilize the economy in a crisis in 2008, but unfortunately it is approached every time the standard economy becomes inefficient. In fact, it is a patch on the inefficiency of the whole system.
The system we live in is not sustainable for the long run. A quality system we can trust is needed for long-term use. However, there is a solution that could give us what we need from money in the future. The solution could be blockchain and cryptocurrencies. Blockchain technology would give us the ownership and freedom we need when dealing with money.
If we look comprehensively at money policy, we will see all the shortcomings of this system. Everything has a beginning and an end. It’s time for society to start trusting another, better system. The quality of money is important, so it is necessary to have a quality money system.