Bitcoin is many things to many people – digital gold, a speculative investment, a technical experiment, a decentralized alternative to fiat money, etc.
But the comparison to another central bank is probably something cryptocurrency maker Satoshi Nakamoto expected his creation to be compared to. However, that’s what Strike CEO Jack Mallers says in a new Twitter thread. Is he right?
Jack Mallers makes a stunning statement about Bitcoin
Jack Mallers is the CEO of Chicago-based BTC payment service provider Strike and played an important role in bringing Bitcoin on a large scale to El Salvador. In a new Twitter thread, he compares the best cryptocurrency to a central bank — more specifically, the “central banking system of the Internet.”
Bitcoin network (often abbreviated to # Bitcoinor simply BTC) is the central banking system of the Internet (or Internet).
– Jack Mallers (@jackmallers) February 21, 2023
Comparison of bitcoin with the central banking system
Within the currency base of the first block in the Bitcoin chain, it contains what is called a genesis block The text “The Times 03/Jan/2009 Chancellor on second bailout for banks.”
The newspaper’s headline refers to the ongoing efforts of governments and central banks to save small banks from collapse amid the Great Financial Crisis of 2008. During the crash, Britain’s Northern Rock bank seeking emergency help created the country’s first bank in more than 150 years.
Central banks were introduced for several reasons – such as controlling the money supply, inflation, and interest rates. But more importantly, the central bank’s role is as a lender of last resort, designed to prevent the constant bank inflows that occurred before the Wall Street panic of 1929.
Although Bitcoin was created in protest of such policies, which could have dangerous implications for citizens of which there is no say, central banks bailing out other banks is exactly what they are supposed to do. And if that is what a central bank is for, is it really accurate to call Bitcoin the “central banking system of the Internet,” or to compare it to a central bank at all?
BTC versus the stock market since the 2008 Great Financial Crisis | BTCUSD on TradingView.com
Did the CEO on Strike get it right?
The answer is yes.” Bitcoin was designed to complement the Internet as an emerging economy and rescue it from the control of governments and free from the influence of traditional central bank monetary policies.
Maler’s Twitter thread says that the Bitcoin network was created to “mitigate financial crises,” much like central banks aim to do. The big difference between Bitcoin and central banks is that the government “privilege” cannot increase the supply of BTC the way the current monetary system does.
It is now more than 14 years since the inception of cryptocurrency and the world is preparing for another collapse of the financial system. Will Bitcoin be ready to save the Internet from the next major financial crisis? Do you agree with Jack?
