The System-Architecture The System-Architecture We have too much money. A provocative statement, isn’t it? But money itself is nothing more than a digital record used to exchange goods and services. Banks serve as intermediaries, helping users manage the timing of transactions. For now, they remain the main data centers. The transaction balance is measured in units called currencies. Of course, different systems operate such databases, often using different names for their currencies, though most are referred to simply as “money.” These systems are typically structured around geographic regions, much like local markets. Thankfully, they offer excellent APIs to maintain compatibility. Naturally, goods and services from some markets are in higher demand than others. As a result, users must exchange more of one currency for another on what is known as the foreign exchange market. At first glance, this seems like a well-designed system that allows nearly everyone to access goods and services through the basic principle of supply and demand. So, where is the challenge? The Overhead - Taxes The Overhead - Taxes The exchange of goods and services is not entirely managed by the users who produce and consume them. In most cases, users elect a more privileged group to oversee parts of the system. Let us call this user-group “the government.” Its members are entitled to redistribute currency units and to determine how much is taken from users on a regular basis; this is known as tax. What do they spend it on? That largely depends on the promises they made to get elected. 他们比实际创建商品和服务的用户更有能力吗?他们总是履行承诺吗?幸运的是,选举定期举行。 The Ambitious Superusers 雄心勃勃的超级用户 Now, imagine if these superusers could not only redistribute but also create money at the push of a button. This feature was introduced in the United States in 1971, when the total money supply was no longer backed by gold. The organizational unit with the privilege to exercise this feature is called the central bank. Would this feature lead to a greater volume of goods and services? No. It would merely reduce the value of the currency being manipulated. The same goods and services would simply be traded for a higher number of currency units. 幸运的是,商品和服务的总体量,让我们称之为经济,随着时间的推移而增长,如果经济扩张,那么面包等商品的价格会下降,假设供应增长的速度比需求快。 Out of Balance Out of Balance 大多数政府倾向于创造比经济增长合理的更多的货币,如果价格保持稳定,这会导致通货膨胀。 Governments often spend beyond their means, leading to debt. That debt must be serviced, which requires paying interest. Unfortunately, this is often based on the flawed belief that debt creation equals wealth creation. In 1975, shortly after the aforementioned “feature” was introduced, the US money supply (M2) equaled 37 percent of GDP. 到2025年,根据美联储数据(H.6发布,通过FRED“M2SL”)的数据,它已经上升到GDP的75%。 A Dangerous Way Out - The YOLO Approach A Dangerous Way Out - The YOLO Approach So, we have too much money in the system. Some countries that experienced hyperinflation have responded by simply removing zeros from their currency (let’s float the point), as Zimbabwe did in the 2000s. Others, like Argentina, have dramatically reduced the government's role in the economy and allowed markets to self-correct. Feel free to investigate which strategy was more effective. But there may be a third approach: Imagine the creation of an artificial currency whose supply is intentionally limited. Its demand is generated through marketing and social media, even if it cannot be widely used to purchase goods and services. Who in their right mind would exchange their existing currency for something so abstract? Well, even money has a price. That price is determined by supply and demand. Though it sounds odd, the price of money is a real concept. If a currency cannot buy much but can still be exchanged for others, its value becomes detached from goods and services and instead driven by hype. Combine this with the idea of artificial scarcity and the result is predictable. Its value rises in relation to existing currencies. Eventually, more and more “old” currency, let us call it fiat money, is exchanged for this new and shiny alternative. It may even become so valuable that banks and governments can no longer ignore it, which, in turn, increases its value further. At some point, it might even replace conventional currencies. 这里是捕获: 其供给不能随意增加的中央银行,这意味着它不能被用作政治工具. 政府是否愿意放弃这种权力? 可能不是。 金融市场是高度监管的环境. 这意味着新的光辉货币可以被禁止。 That is one way to eliminate excess M2 money from the system. 当然,这个场景纯粹是虚构的。
