United Nation’s General Assembly has covered discussion on blockchain and cryptocurrencies. The outstanding speech comes from Malta’s Prime Minister Joseph Muscat: Malta has positioned itself as the “Blockchain Island,” which will introduce favourable regulations for the crypto environment. Malta has chosen to focus on the benefits that crypto can offer and has adopted it wholeheartedly. As a matter of fact, Muscat said that cryptocurrencies and blockchain can solve several problems and will become the money of the future. An important point has been risen from the Maltese PM which points out the importance of understanding the concept of money and its value. The value of money is not static. In the short term, it may ebb and flow against other currencies on the market. In the long-term, a currency tends to lose buying power over time through inflation, and as more currency units are created.
The S. Ammous’ quotation, in his book ‘The Bitcoin Standard’, links the Muscat view of seeing cryptocurrencies as money of the future to the quality’s lack of the current money. Ammous stresses that money must keep stable or rather increase its purchasing power while keeping his features of divisibility and “groupability”. At beginning of the 20th century, the money supply was just $7 billion. Today there are 1,900X more dollars in circulation. While economic growth has driven all in making many more dollars today, it is still phenomenal to think that during past, especially before the 20th century, a dollar could buy a pair of leather shoes or a women’s house dress. Inflation is a result of too much money chasing too few goods – and it is often influenced by government policies, central banks, and other factors. The buying power of a dollar has changed significantly over the last century. In the U.S., several blockchain companies have formed a coalition and hired Klein/Johnson Group, a bipartisan lobby shop and have agreed to accept part of its payment in digital coins. Though China has banned crypto trading, Beijing Sci-Tech Report (BSTR), China’s oldest tech publication, has said it will accept Bitcoin for its 2019 subscriptions. The amount of retailers and companies accepting Bitcoin payments is increasing on daily basis and it is trackable trough coinmap.org. Muscat is an innovative PM and is leading the Maltese government to be part of the system which recognizes, as well as all the venues listed in coinmap.org, the power of the Internet of Money (A.Antonopoulos).
“What matters in money is its purchasing power, not its quantity, and as such, any quantity of money is enough to fulfil the monetary functions, as long as it is divisible and groupable enough to satisfy holders’ transaction and storage needs”