Interesting insights, also interesting view that Crypto Currencies will not solve all problems of the current financial system.
Anyway, I see a main difference. Especially after Nixon ditched the gold standard (= told other countries that they will not get their valuable gold back, but instead small pieces of green paper), the US managed to position themselves in a situation where they can create as much money as they want out of thin air and make other countries (with more or less force) deliver valuable products or commodities (like oil) in return. As you outlined this approach has quite some nice advantages (for the US) :
“So, as long as money is accepted by everyone as a representation of a debt someone else will always be willing to pay, money is a representation of power over others.
This is why money is so appealing — money is power, literally.”
“Effectively, there’s no need to ever approach the original issuer of the currency and demand the face value of the note because the value can be extracted from anyone else.”
So from a US point of view this is great and likely nobody within the US sees a reason to change that .. but maybe the remaining ~ 7.2 billion people on earth living in other countries.
Crypto Currencies are in that respect more fair that i.e. Bitcoin can not be created out of thin air without effort. So maybe there comes a day when people are not even interested any more in the value of FIAT money but only measure value of good and services in Crypto Currencies.
There has been even a new term already coined (no pun intended) “de-dollarization”. Future will tell us how things will pan out. I am curious.
