The article discusses the fundamental issue of trust in conventional currency systems, particularly concerning central banks and financial institutions. It references the cyclic nature of financial bubbles and failures throughout history, including notable analogies and statements from figures like Sam Bankman-Fried. The text also touches on the concept of 'hyperbitcoinization,' wherein Bitcoin might become the global standard, suggesting that the future of finance could be different amidst a backdrop of ongoing skepticism about fiat currency and speculative crypto-assets.
The root problem with conventional currency is all the trust that's required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust.
Financial history is littered with people trying to create financial machines of perpetual motion, usually leading to elaborate failures before they are recognized as such.
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