Patrick Iturra Report, EIG Asset Manager
Bitcoin appears to meet the definition of an energy-backed currency proposed by the famed American inventor during the interbellum period. Let’s consider the possibility here, can we use bitcoin as an energy currency?
Long ago, famous industrialist and inventor Henry Ford mentioned energy-backed currency. Bitcoin appears to meet the definition! In 1921, American industrialist Henry Ford said creating a new energy-based currency to replace the traditional cash currency system.
This proposal has a lot of similarities with the 2008 Bitcoin whitepaper introduced by Satoshi Nakamoto, even though bitcoin runs on the blockchain network, which would have been impossible to put together in 1921.
But, let’s consider the possibility here, can we use bitcoin as an energy currency?
Understanding the Idea: Bitcoin as an Energy currency
As per the article dated 4th Dec 1921 in the New York Tribune, Henry Ford mentioned his vision to replace gold with an energy currency to end wars. His vision was to build the most significant power plant globally and allocate the power units in the form of currency. The main idea here was to associate the units of power with monetary value. Overall, his vision was to create an alternative currency to the traditional form of money.
But, Henry Ford was not able to go ahead with this idea to create energy currency. But today, something quite similar has come into existence, which is bitcoin!
Since it came into existence in 2009, 18.8 million BTC have been added to the network using high-end computers to solve cryptographic equations. Although the idea of having a cryptocurrency is quite revolutionary, recently, bitcoin has been getting a lot of criticism for its impact on the environment.
Can cryptocurrencies end wars?
Recalling what Henry Ford had mentioned in 1921 that gold controls wars. If you break the control, then you stop wars.
Considering the same in Bitcoin, many of its supporters claim that bitcoin can eliminate all wars. Yes, it removes the state government’s ability to fund conflicts via inflation. It takes control from the governments and gives it back to the people. Even Henry Ford explained that the big international banks control the majority of the supplies. The whole process allowed the elite bankers to create an active money market with promising growth during wartime.
US President Richard Nixon abandoned the gold standard in 1971. He quotes that his government will suspend the conversion between dollars/bullion. Later, the quasi-gold standard was removed by 1976. Also, the gold standard was released by the US in 1933 already.
Many people on social media, especially Reddit, have posted that Satoshi Nakamoto created bitcoin based on henry ford’s theory. The reason mentioned here is the similarities in the vision of both individuals. Both of them wanted to create an energy currency to give power back to the people & end wars.
Bitcoin is undoubtedly the currency of the future, where money is decentralized, and nobody has the power to control it! It is the people who have absolute control over their wealth, not the banks.
I strongly suggest that you start taking your investments seriously & invest in real estate, bitcoin, and investment mediums.
Remember, “Investing is a marathon, not a sprint!” planned investments yield the highest returns!
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EIG Asset Manager, I monitor my investors’ property performance and maximize their real estate income. My job involves leading your real estate investment company’s construction, operations, and leasing teams to ensure optimal value for each asset. FALLOW