Thanks for your reply! I also agree that people should be more conscious about the future of cryptocurrencies so history doesn't repeat itself! Could you explain to me a bit more in detail what Jefferson meant by creating money by representatives (like in Congress?) and if this has any correlation with people who currently utilize mining rigs to gain cryptocurrency?
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The history books teach a myth about Continental currency. The British made a Hurculean effort to "break" the Continental currency, which was issued directly by Congress, but could not do so. The British dumped tons of counterfeit Continental dollars on the economy, and the colonies continued to trade and to produce and to fight.
So when the Constitution was written, the founders did not think it was necessary to elaborate on what they meant when they said that Congress shall have the power to coin money. They thought that was clear enough, in light of the fact that the Continental Congress had been doing exactly that.
Unfortunately, our elected representatives seem to have no clue about how money is created. On some level they know that when the US Government issues a bond, and the Federal Reserve buys that bond, the money to buy it is created out of thin air solely as a "mechanism" to balance the books. They have a bond on their books, so they simply write an offsetting or balancing entry that balances the IOU from the government with a "deposit" owed back to the government -- in the form of credits in the government's checking account.
This is exactly the opposite of what happens with mining cryptocurrencies. The currency may in fact be "created" out of nothing, but it is not linked to anything other than the owner. As soon as it is created, it is owned. And not owed to anyone. And not capable of destruction.
Fiat money is destructible. The man whose name adorns the Federal Reserve building in DC explained to Congress that under the Federal Reserve system, if all debts were paid off, there would be no money. That can't happen with cryptocurrencies. The tokens that have been created are in the blockchain to stay.
Your reply makes me excited for the future of cryptocurrency. The way the Federal Reserve can one up the government by buying these bonds is scary for the future of the fiat monetary system that so many people depend on.Thank you for sharing your ideas, it made me do some research but I learned a lot!
Thank you!