BankSith on Nostr: The concept of money has undergone significant changes throughout history, and today ...
The concept of money has undergone significant changes throughout history, and today we have a mix of traditional fiat currencies hard money like #Bitcoin, and timeless commodities like #gold. To navigate modern finance, it's essential to understand the differences between these forms of money, particularly between bearer assets and IOUs.
Bearer assets, such as gold and Bitcoin, are tangible or digital assets that grant ownership to the holder without intermediaries. They have intrinsic value and can be held securely without relying on central authorities. On the other hand, fiat money, like the US dollar or euro, is essentially an IOU, with value because a government maintains it and people have faith in its worth.
The reliance on fiat money and the banking system can lead to significant risks, especially during economic instability. Historical events, such as:
🇺🇸
The Great Depression in the US (1930s), where thousands of banks failed, leading to widespread panic and significant losses for depositors
🇨🇾
The Cyprus Financial Crisis (2012-2013), where the government imposed capital controls and partially confiscated bank deposits in the EU, resulting in a loss of confidence in the banking system
🇦🇷
Argentina's Economic Turmoil (2001), where a severe economic crisis led to a massive bank run, frozen bank accounts, and widespread civil unrest
These events highlight the vulnerabilities of fiat currencies and the banking infrastructure. In contrast, gold and Bitcoin offer a sense of security as bearer assets. Gold has been a store of value for thousands of years, providing a hedge against inflation and economic uncertainty, while Bitcoin represents a new frontier in digital finance, allowing individuals to hold their wealth independently, free from the control of banks or governments.
#MaryPoppins 🎥
Study #bitcoin 🧡
Follow on #nostr If you want to live:
BTC Sessions (nprofile…268u)
21stCapital (nprofile…jmug)
BankSith (nprofile…jm77)
Bearer assets, such as gold and Bitcoin, are tangible or digital assets that grant ownership to the holder without intermediaries. They have intrinsic value and can be held securely without relying on central authorities. On the other hand, fiat money, like the US dollar or euro, is essentially an IOU, with value because a government maintains it and people have faith in its worth.
The reliance on fiat money and the banking system can lead to significant risks, especially during economic instability. Historical events, such as:
🇺🇸
The Great Depression in the US (1930s), where thousands of banks failed, leading to widespread panic and significant losses for depositors
🇨🇾
The Cyprus Financial Crisis (2012-2013), where the government imposed capital controls and partially confiscated bank deposits in the EU, resulting in a loss of confidence in the banking system
🇦🇷
Argentina's Economic Turmoil (2001), where a severe economic crisis led to a massive bank run, frozen bank accounts, and widespread civil unrest
These events highlight the vulnerabilities of fiat currencies and the banking infrastructure. In contrast, gold and Bitcoin offer a sense of security as bearer assets. Gold has been a store of value for thousands of years, providing a hedge against inflation and economic uncertainty, while Bitcoin represents a new frontier in digital finance, allowing individuals to hold their wealth independently, free from the control of banks or governments.
#MaryPoppins 🎥
Study #bitcoin 🧡
Follow on #nostr If you want to live:
BTC Sessions (nprofile…268u)
21stCapital (nprofile…jmug)
BankSith (nprofile…jm77)