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Where Bitcoin's resilience comes from: Look at these fiat currencies
Author: Kraken; Compiler: Golden Finance 0xjs
On October 31, 2008, Satoshi Nakamoto anonymously released a white paper, a decentralized "peer-to-peer electronic cash system".
The Bitcoin white paper is a direct response to the systemic weaknesses exposed in the 2008 financial crisis. With its fixed-supply and decentralized nature, it proposes a fundamental alternative to a global, government-issued monetary system.
! [c9qB77BgxmcIgGVS2J3q1jdLQ6rGHYrvPdPGZ92D.jpeg] (https://img-cdn.gateio.im/webp-social/moments-40baef27dd-aecceff542-dd1a6f-cd5cc0.webp "7127463")
One Million Drachmas, Greece, 1944
Problem: The politicization of money
The value of government-issued currency derives from the trust of its holders in the institutions that issue and administer it, such as central banks.
These institutions benefit from a good reputation for governance. But the level of trust that citizens place in it changes over time, and when trust is the main determinant of a currency's value, anything that challenges that trust tends to have a negative impact on the value of that currency.
! [kfHxstbrJh4I9FpFYqWNZnmmL3X8GqY5m0R9L8G7.jpeg] (https://img-cdn.gateio.im/webp-social/moments-40baef27dd-09db30fd1c-dd1a6f-cd5cc0.webp "7127464")
500 million dinars, Croatia, 1993
One of the most striking examples in recent years is the Turkish lira, whose exchange rate against other global currencies has collapsed. Lack of confidence in the Turkish government's ability to manage its finances will only accelerate the depreciation of the lira due to persistent inflation and the absurd policy idea that keeping interest rates near zero (which encourages aggressive borrowing and spending) will lead to lower prices.
! [khgc6hUOnfvrAKaUEj595OM07DprTHJANHTxlKx6.png] (https://img-cdn.gateio.im/webp-social/moments-40baef27dd-054b7e832c-dd1a6f-cd5cc0.webp "7127483")
One trillion Zimbabwean dollars, Zimbabwe, 2008
So, as we celebrate the 15th anniversary of the Bitcoin white paper, we herald a new era of monetary sovereignty that puts individuals in control of their wealth.