"I don't believe we shall ever have a good money again before we take the thing out of the hands of government, because we can't take them violently out of the hands of government. All we can do is by some sly roundabout way introduce something that they can't stop." ~ 1984 | Friedrich Hayek | Economist

Hayek’s words raise an interesting question: Have you ever stopped to think about why governments control money in the first place? Most people don’t, but it’s worth considering — especially when you realize how this system impacts your wallet.

The money we use today is called fiat currency. It’s not backed by anything tangible, like gold or silver; its value comes entirely from trust in the government that issues it. This setup gives governments a lot of power — they can print more money whenever they want. But here’s the catch: printing too much money causes inflation. That’s why prices seem to creep up every year. Inflation isn’t just annoying; it slowly eats away at the value of your savings and income.

Now here’s where things get ironic. The U.S. government, which runs one of the biggest fiat systems in the world, has started building a Bitcoin Strategic Reserve. Yes, Bitcoin — the decentralized digital currency designed to resist inflation — is being stockpiled by the very institutions that control dollars.

Unlike fiat money, Bitcoin has a fixed supply, so it can’t be inflated. It’s almost like the government is admitting that its own system has some flaws.

Hayek dreamed of “good money” that couldn’t be manipulated by governments. And now, in a twist he probably never imagined, governments are turning to Bitcoin — a currency born out of distrust in centralized systems - as a strategic asset. It makes you wonder: Is this just a clever move by the U.S., or could it be the start of something bigger?

Reply to this note

Please Login to reply.

Discussion

No replies yet.