The rise of alternative currency is fascinating.
You may have noticed reports about Bitcoin’s value recently – its price is headed into the stratosphere.
The crypto-currency’s recent meteoric price rise over the summer has seen one Bitcoin go from being worth $1,500 in early May to more than $5,000 over the weekend, before dropping to $4,654 at the time of publication.
What this represents is a collapse in the people’s trust of government. For the past 150 years or so, national governments have had an almost exclusive power and responsibility to create a common unit of exchange – currency. Prior to that, it was far more common to have individual banks, private businesses, or other local entities create a certificate of exchange or barter methodology. Over time, national governments gradually took over that responsibility. The rise of Bitcoin represents the people’s increasing distrust in the underlying value of national currencies and a move toward a common unit of exchange that is decoupled from the regulatory control of any specific government.