Bitcoin isn’t about distrust, it is about building a trustworthy foundation, Mr. Harrari
Yuval Noah Harrari recently made a video about Bitcoin in which he presents his critical view of Bitcoin.
Yuval Noah Harrari sees the problem with Bitcoin as being that it would damage trust. Although he understands why people do not trust central banks, they are still man-made institutions. Therefore, Bitcoin would also simultaneously damage trust in man-made institutions and the interactions between people and institutions.
But Bitcoin does not do this at all. Quite the opposite. Bitcoin creates a basis of trust. The majority of people are good and want to do good. Even in institutions such as the FED, which are usually very demonized. The problem why monetary policy often goes so wrong in the case of the Fed is, on the one hand, the complexity of the (monetary) economy and, on the other, that there are very few players who benefit from monetary policy, which harms most people. One could even get into geopolitics at this point and show how the dollar is used to maintain the hegemonic power of the United States, but this would be going too far.
Bitcoin is therefore about creating a basic foundation for interactions and trade between people, where the conditions are such that it cannot be exploited by individual players. If this is fulfilled, a basis of trust can be established through money. Human error in monetary policy is also no longer possible. The money supply cannot be increased or decreased at will. This means that the participants in this system can trust much more in the system that their money will be handled well and that, for example, no wars, dictators, drugs, etc. will be financed by it.
Moreover, there will still be enough institutions even with Bitcoin. In addition to improving the monetary system, we also need to work on making these institutions better. The monetary system and institutions go hand in hand. However, if you have a corrupted monetary system, it is more difficult to build institutions with integrity and transparency.
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Disclaimer: The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial, legal or tax advice. The content of this text is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. The author does not guarantee any particular outcome.
