Bitcoin Official Currency of Lunar and Mars Settlements?
Will bitcoin or some other cryptocurrency be the official currency for Lunar and Mars settlements?
A digital non centralized currency makes sense for interplanetary transactions. Currency is currently created by central banks who work closely with governments to create a countries money supply. The current monetary system will not work for an interplanetary species. The currency of the future must transcend our current monetary system and evolve into something suitable for use in space. Colonizing the moon and mars will require something more akin to digital cryptocurrency.
Why Our Current Monetary System Will Not Work In Space
Our monetary systems were originally founded on the gold standard. The gold standard closely tied the value of gold to currency. While on the gold standard a country can only have as much money as it has gold. In 1971 US President Nixon removed the United States from the Gold Standard, other countries soon followed suit. These currencies soon became what's known as Fiat currency. Fiat currency also known as fiat money is only worth money because a government says it is. If we are to truly transcend this world and move on to others we cannot use money that is solely controlled by a single government.
If Fiat Currency Is Flawed Can We Move Back To The Gold Standard?
Can we move to a universal currency that is backed by gold? I don't think so. The gold standard is based on the limited supply of a precious metal found here on earth. Only so much gold exists, and it takes a certain amount of time to mine and process it. This is the foundation of the gold standard. If we base our currency off a limited supply of materials found on a single planet then we will have several issues. What happens if a corporation figures out how to mine meteors or finds huge Gold deposits on mars near a volcano or another planet? Our old system just wont work.
Bitcoin Has All Solutions Built In
Bitoin has been purposely built to mimic the gold standard while at the same time being decentralized and not controlled by any one Government or Corporation. Read this article from the Cato Institute Bitcoin can be mined and creates a limited number of new coins each year. More importantly this number is built into the Cryptocurrency and can not be regulated by any one person or agency. A government can’t decide to print more Bitcoin because they need money to go to war, build roads, or buy resources. Bitcoin isn’t physical and doesn’t need to be created and destroyed every year in order for the currency to function correctly. Coins while fun to collect are a bit archaic in their capacity to facilitate transactions and will ultimately be obsolete.
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