Before Bitgesell
Fiat dollar’s legacy since 1971
USD - The False Equivalence with Gold
In late 1944, at a hotel in Bretton Woods (USA), 730 delegates from the 44 leading Allied nations gathered to decide the future of global currency, which until then had been led by the British pound (UK). The meetings and negotiations lasted for 21 days, with Russia also initially participating.
However, events eventually led Russia to withdraw from the talks before signing, citing the pretext that the institutions to be created worldwide would be nothing more than "branches of Wall Street." This conference established the entire international monetary system and gave birth to institutions such as the IMF (International Monetary Fund) and the World Bank.
The United States, holding two-thirds of the world's gold, insisted on a system similar to the previous one but this time with all currencies pegged to gold and the US dollar. Thus, the Bretton Woods system was born, officially coming into effect in 1945. The world now had a new exchange system and a new global standard currency: the USD dollar.
About 25 years later, on August 15, 1971, the United States ended this agreement, which also marked the end of the dollar's peg to gold. This measure, known as the "Nixon Shock," not only ended the agreement but also turned the dollar into a fiat currency, whose value was now based simply on the words or authority of politicians.
There is no doubt that Bitcoin or Bitgesell, for what they represent, will hold much more value than thousands dollar bills or even dozens of kilograms of gold. First, Bitcoin (2008), as it is the first cryptocurrency and has been under attack by hackers from all over the world for over 14 years, yet no one has been able to destroy it. Secondly, Bitgesell (2020), which receives the same updates from BTC but at a higher level is the first cryptocurrency to burn 90% of taxes & fees transactions and implement annual halving.
Comments
Post a Comment