Many of us know about bitcoin and other digital favorite assets more than the local Fiat currency. We just took as a given that our local currency is in circulation and accepted the fact that it is so regulated global Finance. We considered the U.S. dollar is the most stable currency, suitable to serve as a global standard. But taking such a position, we didn’t know that the dollar is not backed by gold or silver.
Pompliano Anthony, founder and partner of Morgan Creek Digital, taught us a tweet with a brief history lesson, telling of how America abolished the gold standard in 1971. Pompliano, writes:
“In 1971, Richard Nixon untied the dollar from gold. He publicly stated that he intends to return to the gold standard. This did not happen. Why trust the people and the authorities, when to rely on math and code?”
To understand the meaning of the words, Pompliano, you can refer to the website of the Federal reserve system of the United States, where we find the following information:
“Banknotes of the Federal reserve Bank can not freely exchanged for gold, silver or any other value. Banknotes of a Federal reserve Bank may not be exchanged for gold since January 30, 1934, when Congress amended section 16 of the Federal reserve Act, after which the text of the law was to read as follows: “the above-mentioned banknotes [Federal reserve Bank] will be bonds in the United States.. They will be exchanged for lawful money on demand at the Treasury of the United States, in Washington, DC, or in any branch of the Federal reserve Bank.”
As for silver, it cannot be exchanged for banknotes fed from the 1960s.
According to Anthony Pompliano, we must trust rather to the code and mathematical evidence in the block chain in various cryptocurrencies, rather than banks and governments that deliberately silent about the origin of our local currencies.
Chapter ShapeShift Eric Voorhees summed up the situation this way:
“Bitcoin: a digital currency with a limited and known reserves, is not bound by borders and control from the Central authority. The U.S. dollar, a digital currency with unlimited and unknown stock, constrained by borders, and the banking cabal. What you have in your wallet?”
Tying the facts together, it is impossible not to conclude that bitcoin is more reliable, transparent and efficient store of value than local currencies such as US dollar, British pound, Euro, etc. In the world of cryptocurrency and blockchain, you can rely on the math and code in a decentralized manner, when any should see a distributed registry and transaction history. On the opposite side, the ordinary citizen cannot obtain the registry of governmental currency, as well as to exchange their money for gold, in the case of the US dollar. Therefore, we can safely assert that bitcoin is the best option.