In his recent paper, William Wright, an entrepreneur and activist of the Block of China, explores the future of digital currencies, arguing that, given the historical developments, this time will transform the digital currencies of the world’s economic system. Read this fascinating article.
Where there is no order, there is chaos – Luca Pacioli
If we look back at the past, we see a lot of examples of the geniuses who were able to make a difference in the world with ink-impregnated hands and poorly-eyed eyes. These geniuses brought new ideas, philosophies and philosophies to mankind.
This process has been repeated over and over again throughout history. When we get a new technology, we will put aside the inefficient technology. Over the last few years, there have been a lot of innovations, and among them, Blockchain’s technology is one of them that will change how we use the money.
The first accounting book
A few years after Chris Columbus began his exploratory journey into the new world, a well-known Italian monk named Luca Pacioli, one of the most influential books in history, was depicted. The launch of modern accounting began in 1494, when Pachely expressed the principles of accounting used in his country (Italy) in a structured way in his book. This book was called “Everything about Accounts, Geometry and Relationships” (Summa de Arithmetica, Geometria, Proportioni et Proportionalita).
In those years, when Luca Pacioli wrote his own book, the humanistic movement was in the early stages of the Renaissance. The growth of the business class in the Italian Renaissance as well as in other parts of Europe helped expand the movement. Humanism is a philosophical ideology that encourages people to enjoy free life rather than slavery.
Pacioli was careful about the changes that took place at that time. The information that Pacioli at that time gained showed that there was a new era of economic prosperity and an opportunity for the growth of art, business, and knowledge. The methods of recording the financial data that Pacioli referred to in this book was not his own. However, today he is known for writing this valuable book titled “Accounting father”.
Today’s Ledger is a normal business case. But at the time Pacioli’s book was written, this concept was considered a very advanced and valuable subject. The two-way accounting methodology has become a standard pattern for recording business transactions over the past 500 years.
This accounting method, which at that time was considered a new phenomenon, led to the creation of stable and more business-driven businesses that increased wealth for business owners. The standard of living also improved as a result of this change, and art and music also went up to the same level.
Print the book of Pacioli
Perhaps, when Gutenberg invented the printing press in 1439, he could not imagine the transformation that might be due to this invention in the world. Access to the print car resulted in this Pacioli book as well as several other works published throughout Italy as well as other European countries.
In 2008, an individual nicknamed Satoshi Nakamoto published an article on the Internet. There are a lot of ambiguities about Nekamoto’s real identity and the world considers him one of the main figures in the growth of digital currencies.
Nakamoto, like Pacheville, wrote when a lot of changes were taking place in the community. In Pacioli, the values of humanism were emerging, while during the Nakamoto era, there was a strong tendency to increase individual freedoms and escape from state control.
Traditional money, a powerful bitcoin competitor
The main obstacle against the massive use of decentralized systems and digital currencies is nothing but traditional money. We all use Fiat money every day. That the value of different countries depends on the dollar is itself controversial. The decision to use digital currencies, at least to some extent, means the decision not to use Fiat money.
Leading countries of crisis
The historical experience has shown that the decline in the national currency of a country and the turmoil of the people can bring about rapid changes. After a severe financial crisis in Greece, hyperinflation in Zimbabwe, as well as unrest in Ukraine, a large number of citizens turned to using bitcoin.
People in Venezuela, who have been developing bitter taste over the years, are turning to Bitcoin.
The problem is that turning the Fiat money (without backing) into a digital currency is high and the networking effect ultimately benefits the Federal Reserve (US Central Bank), the International Monetary Fund, the World Bank and other international banking organizations.
Bitcoin’s White Papers Performance Report was coincidental with the general lack of confidence in the banking system and the banks’ problems. Nakamoto, at WhitePiper, outlines a peer-to-peer digital payment system that uses encryption rather than trusting the intermediary entity, and it’s called bitcoin. This idea was not new at all, but until then, in 2008, there was no infrastructure required. In fact, Nekamotou acted like v, and he did so by collecting ideas about the General Office and replacing it with a centralized banking system.
Venezuela is not the only country with severe financial problems. People from other countries in the world have been depleted by the devaluation of money, poverty, and increased government oversight. A new class has been created in the community that hopes to get rid of big banks and government oversight.
The digital currencies created by this new class without limitations will eventually lead to a reduction in the impact of the current global financial system. Suppose that if Paciolis innovation was made public as a general office, and that people knew about the details of business transactions and political campaigns, how would the history of the past five centuries be?
I anticipate that this class, without limitation, will eventually use the technology of the Blockchain with all its strength, and, along with its loyalty to the principles of capitalism, will seek to reduce the wealth gap in the world. However, it remains to be seen whether financial institutions and governments ultimately welcome, change or reject digital currencies.
Finally, there is no mention of a quote from Pacioli saying:
Helping those who are awake, not those who are asleep!