Trust is the name of the game when it comes to CASH - as long as someone is willing to believe that it is worth something in their ‘minds eye’ it is. In reality is it?
This is and has been the balancing act that the central banks have been playing for the past 50 years plus.
It is the argument Crypto currency investors push that they are finite and ultimately auditable due their block chain technology. Like the Gold Standard was prior to Bretton Woods in the 1971, it was finite.
In the following article John makes some excellent points, and one of them is ‘be careful what you wish for…’
Humanity is chaotic, as it is natural, if you build rigid systems for finance such as Gold Standards or Cryto Block Chains where is the wriggle room… the mortgage top-up, the credit card…. when things go a wry?
Thanks John Berry for a thought provoking article.
