Our Largest Wealth System Is Doomed

But Bitcoin Can Save It

The global monetary system is the largest wealth systems there is.

We’ll start with how it works, then I’ll explain why it is doomed with a collapse that is already underway.

“Mommy, Where Does Money Come From?”

Most countries have a central bank responsible for issuing and managing their national currency. They control the money supply through various mechanisms like setting interest rates, buying or selling government bonds (open market operations), and reserve requirements for commercial banks.

Commercial banks play a crucial role in expanding the money supply through fractional reserve banking. They lend out a portion of the deposits they receive, creating new money in the process. The global flow of money is then connected and driven by exchange rates and interest rates.

Imagine the global monetary system as a vast ocean, with individual currencies as ships navigating its currents. Some (US dollar) are large and powerful, carving their own paths. Others, like the emerging market curre…