BitopiaLand on Nostr: From Prosperity to Collapse: Lessons from Monetary History History offers powerful ...
From Prosperity to Collapse: Lessons from Monetary History
History offers powerful examples of the transformative impact of sound money.
During the Renaissance and the Industrial Revolution, societies flourished because stable monetary systems encouraged saving, investment, and innovation.
Gold-backed currencies provided a foundation for long-term thinking. This long-term thinking in turn led to extraordinary advancements in art, science, and industry.
In stark contrast, periods of unsound money led to decline. The fall of the Roman Empire, for instance, was accelerated by currency debasement, forcing a vicious cycle of short-term survivalism on Roman society.
Similar patterns have played out in other civilizations, like Weimar Germany in the 1920s or 15th century Ming China. Money printing leads to inflation, which in turn forces short-term thinking on people at the expense of long-term value creation.
When sound money gets abandoned, short-term thinking and instant gratification takes precedence of long-term value creation. And more often than not this leads to either collapse or the start of an extended collapse.
History offers powerful examples of the transformative impact of sound money.
During the Renaissance and the Industrial Revolution, societies flourished because stable monetary systems encouraged saving, investment, and innovation.
Gold-backed currencies provided a foundation for long-term thinking. This long-term thinking in turn led to extraordinary advancements in art, science, and industry.
In stark contrast, periods of unsound money led to decline. The fall of the Roman Empire, for instance, was accelerated by currency debasement, forcing a vicious cycle of short-term survivalism on Roman society.
Similar patterns have played out in other civilizations, like Weimar Germany in the 1920s or 15th century Ming China. Money printing leads to inflation, which in turn forces short-term thinking on people at the expense of long-term value creation.
When sound money gets abandoned, short-term thinking and instant gratification takes precedence of long-term value creation. And more often than not this leads to either collapse or the start of an extended collapse.