Bitcoin and crypto currencies have recently started to find their place in mainstream media both in the world and in our country. Finally, T24 writer Giray Kömürcü mentioned crypto currencies in his column yesterday. Kömürcü begins his article by talking about what money is and for what purpose it is produced. Kömürcü, who says things that we will all participate in, uses the following expressions:
“Today, we clearly see that our economic system that puts money at its center leads to poverty, the slaughter of cultures and nature. However, money was an invention that emerged as a medium of exchange to make life easier. However, over time it became such that it turned into a tool of unhappiness for the masses. “
What Causes Money Scarcity?
Kömürcü says in his article that the main reason for money shortage is interest. According to him, the first thing that turns money away from being a medium of exchange and making it a commodity is interest. When we take interest out of the equation, money becomes just a tool that tries to meet our needs. However, when interest is centered, actions such as saving money and working for money come to the fore.
Kömürcü points out a very important detail in his article: “The increase in prices with the increase in money supply leads people to consumption with the concern that everything will be more expensive in the future even if they do not need it. This is the main purpose of monetary expansion, to increase consumption and investment expenditures by creating demand together with inflation. ”
As such, people want to keep their savings in the bank so that they do not melt, which allows the banking system to find more resources to lend. The statements of “don’t make your money under the pillow” arise precisely from this need. This is how the economy works in the capitalist system.
Cryptocurrencies and Financial System
As it is known, crypto currencies have been at the forefront of the last few years. These instruments not only prevent unlimited money printing, but also act as an important shield for inflation. Kömürcü uses the following expressions in his article regarding the subject:
“Most of the crypto coins have been built with a limited supply structure. For example, Bitcoin, one of the most known crypto currencies, is limited to 21 million due to its mathematical infrastructure. There will never be more than this number of Bitcoin in the market. It can be said that they are deflationary with this structure. ”
According to both the cryptocurrency community and the author, the cornerstones of an economy in the future where interest does not dominate the entire system may consist of cryptocurrencies. According to many names, this is the main purpose of crypto currencies.
Cryptocurrencies and Inflation
In addition to these valuable thoughts of the author Kömürcü, I would like to convey a few comments of my own. The phenomenon of inflation has played an important role in adopting cryptocurrencies, as the professionals of the subject have stated for a long time. Most countries, especially those seeing rapid inflation rates, reported higher transaction volumes in Bitcoin and other cryptocurrencies, and it continues to report.
The depreciation of national currencies around the world has encouraged investors and small businesses to invest their assets in cryptocurrencies. The whole world is going through a difficult period, especially with the pandemic process. If adoption of Bitcoin and other cryptocurrencies increases in these difficult times, I see the future of the financial system brighter.