Ninety years ago today, a seismic shift occurred in the global financial landscape as President Franklin Delano Roosevelt took the United States off the gold standard. This move, part of the New Deal program, was designed to tackle the economic turmoil of the Great Depression.
On this anniversary, and economic turmoil on the horizon once again, we speculate how Bitcoin could theoretically make for an ideal monetary standard.
The Gold Standard
The gold standard, for all its flaws and strengths, tied the value of most currencies (including the dollar) to a tangible, finite asset. This provided economic stability, but also limited growth and the flexibility of monetary policy.
FDR’s audacious move aimed to unshackle the economy, allowing for greater monetary control to combat deflation and encourage economic growth. It was a departure from convention that invited criticism but ultimately signaled…
