Another good synthetic quote that summarises the current situation:
"If I were to describe in one paragraph why money has been broken around the world for so long while almost everything else has improved substantially (energy abundance, technology abundance, and so forth), it’s due to this gap between transaction and settlement speeds that the telecommunication era created.
For a century and a half, the world has been stuck in a local maximum that has required and incentivized ever more complex forms of centralized abstraction to bridge that gap.
The international gold standard worked for several decades during peacetime but was inherently flawed from the start due to how many claims it enabled to exist on such a small monetary base of actual gold, and it failed its first test as soon as war broke out between major powers in Europe.
The Bretton Woods system was even more flawed due to even greater levels of abstraction and managed to fail in less than a decade and a half after full implementation.
The modern system of 160 different ever-devaluing fiat currencies loosely tied to one world reserve fiat currency is highly flawed due to having no inherent grounding in scarcity."
Lyn Alden, Broken Money
CodingInLondon / Matt
npub16n…lftma
2023-12-12 06:14:37
Author Public Key
npub16nd6gm54kk5jf72hzv4glwcqwtka8s28p8x6m4cddxlmum3d8nhs9lftmaPublished at
2023-12-12 06:14:37Event JSON
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"content": "Another good synthetic quote that summarises the current situation:\n\n\"If I were to describe in one paragraph why money has been broken around the world for so long while almost everything else has improved substantially (energy abundance, technology abundance, and so forth), it’s due to this gap between transaction and settlement speeds that the telecommunication era created. \n\nFor a century and a half, the world has been stuck in a local maximum that has required and incentivized ever more complex forms of centralized abstraction to bridge that gap. \n\nThe international gold standard worked for several decades during peacetime but was inherently flawed from the start due to how many claims it enabled to exist on such a small monetary base of actual gold, and it failed its first test as soon as war broke out between major powers in Europe. \n\nThe Bretton Woods system was even more flawed due to even greater levels of abstraction and managed to fail in less than a decade and a half after full implementation. \n\nThe modern system of 160 different ever-devaluing fiat currencies loosely tied to one world reserve fiat currency is highly flawed due to having no inherent grounding in scarcity.\"\n\nLyn Alden, Broken Money\n\n",
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