100 years ago, Henry Ford proposed to replace gold with “energy currency”

In 1921, American industrialist Henry Ford proposed the creation of an “energy currency” that could form the basis of a new currency system-with striking similarities to the peer-to-peer electronic cash system outlined in Satoshi Nakamoto’s Bitcoin in 2008 (Bitcoin) White paper.

The front page of the New York Tribune on Sunday, December 4, 1921.Source: Library of Congress

Bitcoin as an energy currency

December 4, 1921, New York Tribune Publish An article outlines Ford’s vision of replacing gold with an energy currency, which he believes can break the banking elite’s control of global wealth and end the war. He intends to achieve this goal by building “the world’s largest power plant” and creating a new currency system based on “power units.”

Ford founded the Ford Motor Company in 1903, and he told the publication:

“Under the energy currency system, the standard is a certain amount of energy applied within one hour, equivalent to one dollar. This is just a case of thinking and calculation. It is different from the regulations of the international banking group that we have become accustomed to. We believe that there is no other ideal. Standards.”

He said that details about the value of the currency “will be worked out when Congress is willing to listen.”

Although Ford has never been able to advance his vision of fully supporting currencies, Bitcoin seems to have proven this idea a century later. Since 2009, more than 18.8 million BTC have been created through energy-intensive mining, which requires computers to solve increasingly complex mathematical problems.This proof-of-work mining process has attracted harsh criticism Regarding its so-called environmental impact-a short-sighted proposition that ignores Bitcoin capable Accelerate the transition to renewable energy.

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Replace gold and end the war

Regarding the relationship between gold and war, Ford explained:

“The main drawback of war-related gold is that it can be controlled. Break control and you stop the war.”

Some of Bitcoin’s most ardent supporters believe that the robust monetary principles of this cryptocurrency can eliminate war by reducing the country’s ability to fund conflicts through inflation. Although the gold standard makes it harder for the government to inflate the currency, as Ford explained, “international bankers” control most of the gold supply. This process of controlling and accumulating valuable commodities enabled financial elites to create an active currency market, which flourished during wartime.

In 1971, US President Richard Nixon abandoned the remnants of the gold standard. He said that his government would temporarily suspend the exchange between the U.S. dollar and gold.The so-called quasi-gold standard will Last Until 1973, all definitions linking the U.S. dollar to gold were cancelled in 1976. However, in fact, the British government abolished the gold standard in 1931, and the United States followed suit two years later.

related: Bloomberg strategist for the 50th anniversary of the Bretton Woods system said that Bitcoin will replace gold

New York Tribune Article spread On Saturday on Reddit’s r/CryptoCurrency page, it received quite a lot of yes votes.although Satoshi Nakamoto Henry Ford was never mentioned in an online forum post, and some Reddit users speculated that the creator of Bitcoin might have been influenced by the late industrialist. Others joked that Satoshi Nakamoto was actually Ford’s reincarnation because the latter apparently believed in reincarnation.