I wonder if there's something here that's reflective of a larger psychological picture. (Do you think?) That at the moment people would rather relinquish the freedoms of unregulated blockchain currency for the promise of "safety" offered by Big Bank / govt-regulated entities...
Absolutely. At this moment in the history of currency, we are not any point to believe that the freedoms granted with decentralized cryptocurrency outweigh the high costs of its volatility; we just don't trust it enough. We prefer fiat currencies—that still aren't backed by any physical commodity— but upheld by governments, i.e. the "full faith and credit" of the U.S. dollar. It's this reinforcing cycle of trust that preserves its strength between the institutions managing the money supply + businesses and consumers alike = to create the promise of safety.
Besides the Bitcoin Standard, I would suggest my personal favorite on the history of currency:
The Ascent of Money by Niall Ferguson.
"Money is a matter of belief, even faith: belief in the person paying us; belief in the person issuing the money he uses or the institution that honours his cheques or transfers. Money is not metal. It is trust inscribed. And it does not seem to matter much where it is inscribed: on silver, on clay, on paper, on a liquid crystal display."
I wonder if there's something here that's reflective of a larger psychological picture. (Do you think?) That at the moment people would rather relinquish the freedoms of unregulated blockchain currency for the promise of "safety" offered by Big Bank / govt-regulated entities...
Absolutely. At this moment in the history of currency, we are not any point to believe that the freedoms granted with decentralized cryptocurrency outweigh the high costs of its volatility; we just don't trust it enough. We prefer fiat currencies—that still aren't backed by any physical commodity— but upheld by governments, i.e. the "full faith and credit" of the U.S. dollar. It's this reinforcing cycle of trust that preserves its strength between the institutions managing the money supply + businesses and consumers alike = to create the promise of safety.
Besides the Bitcoin Standard, I would suggest my personal favorite on the history of currency:
The Ascent of Money by Niall Ferguson.
"Money is a matter of belief, even faith: belief in the person paying us; belief in the person issuing the money he uses or the institution that honours his cheques or transfers. Money is not metal. It is trust inscribed. And it does not seem to matter much where it is inscribed: on silver, on clay, on paper, on a liquid crystal display."
Trust inscribed! A Trust! The Trust!