Niall Ferguson on the current monetary revolution

By: Luuk Soons

The well-known British historian Niall Ferguson is a connoisseur of our monetary history. He has written books about banking families and the relationship between money and power. The following two works are particularly well-known: The Cash Nexus (2001) and The Ascent of Money (2008). According to Niall Ferguson we are now in the midst of a multi-faceted monetary revolution, which in fact no one really understands.

The monetary revolution started with the adoption of the internet and the further digitization of the financial world. This development has been further accelerated by the pandemic in 2020, with Niall Ferguson Bitcoin and the digital yuan emerge as winners.

The upcoming adoption of digital Chinese central bank money (DCEP) the New Silk Road is only a matter of time. China is leading the world when it comes to rolling out a new financial infrastructure through social media apps and blockchain technology, including the further development of a Blockchain Services Network. Niall Ferguson sees this as a financial totalitarian project. Bitcoin basically acts as a counterweight and should be absorbed by the financial system of the United States.

Study on Bitcoin

Niall Ferguson was initially not in favour of Bitcoin. He did not give the project a chance of success. However, his son urged his father to take a serious look at Bitcoin. He then decided to do this together with his son. This led to his last book being published The Ascent of Money in 2018. He added a chapter on Bitcoin.

His conception of Bitcoin has been completely revised and his Last article in Bloomberg Opinion clearly shows this. He writes that the Dollar Spot Index has decreased in value by 4% since January this year. Gold, on the other hand, has risen 15% in value, while Bitcoin has risen by about 139% against the dollar.

Trade

The trading volumes on the Exchanges booked a Annual record and Institutional investors started adding Bitcoin to their portfolio in 2020. Listed companies, including Square and Micro Strategy, the news when they had added Bitcoin as a strategic reserve.

Curiously, Niall Ferguson advises the United States not to have its own CBDC to develop. Joe Biden's administration would do well to integrate Bitcoin into the financial system of the United States. These are interesting observations, and it's worth reading Niall Ferguson's article: Bitcoin and China is winning the Covid-19 Monetary Revolution.

Disclaimer: This article on Bitcoin is for educational purposes only. It is not investment advice. The article was written by Luuk Soons, the editor-in-chief of this in-depth bitcoin crypto knowledge base. For more in-depth articles on this development: Visit Bestebank.org.

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