Who invented bitcoin: Henry Ford suggested introducing digital currency 100 years ago
Henry Ford is associated with the invention of the assembly line. It allowed to increase labor productivity and reduce the cost of car production. But few people know that this industrialist proposed to create an "energy currency." It is very similar to modern bitcoin. Is Satoshi Nakamoto the reincarnation of Ford?
On October 31, 2008, the White Paper was published on the Internet. Its author was the legendary Satoshi Nakamoto. He described the algorithm for the functioning of electronic money, which can be in circulation without the participation of the regulator.
This day can be considered the birthday of the cue ball. But similar ideas were voiced by Henry Ford back in 1921. That is, the cryptocurrency could have appeared even then. So who really invented bitcoin?
Energy equivalent instead of gold
Henry Ford is an American industrialist who pioneered the production of cheap cars. Thanks to streaming production, he was able to reduce the price of cars and make them affordable for the mass consumer. In total, during his life, he registered more than 160 patents securing his right to inventions.
But few associate Ford’s name with cryptocurrencies. And certainly it is not mentioned when searching for an answer to the question of who invented bitcoin. Meanwhile, it was he who first put forward the idea of digital money, not tied to a material equivalent. In an interview with the New York Tribune, he talked about the “energy monetary system.” In his opinion, the equivalent value of 1 dollar should be the amount of energy that is consumed in an hour.
The famous industrialist suggested abandoning the established thinking that was instilled by international financial organizations. He believed that abandoning the “gold standard” would revolutionize the economy.
Friedrich Hayek also supported Ford’s idea. The Austro-British economist also criticized the monetary policy of states. He believed that it was necessary to take away the “lever of influence” in the form of money from the government. Naturally, this cannot be done by force. Therefore, it is necessary to come up with an alternative to the monetary system, which cannot be controlled.
Unfortunately, Ford was unable to advance the “energy currency” beyond the idea and did not meet with contemporaries. But this does not mean that he put forward an unviable idea.
Benefits of modern virtual currency
After about 100 years, the digital currency finally saw the light of day. We are talking about bitcoin, which appears as a result of mining by solving complex mathematical problems. In other words, the cue ball is the same “energy currency” of Ford. After all, its emission consumes energy that feeds the processors of mining farms.
All bitcoin is issued by mining with energy consumption measured in joules. To use Ford’s terminology, the current price of bitcoin is easy to calculate. It is necessary to multiply the energy value of the coin (measured in kWh) by 0.00173 (to convert units of measurement into each other).
Currently, the BTC blockchain requires approximately 6.9 million kWh to function. That is, one coin should cost about 12 thousand dollars. But this is not the case, since the emission volume laid down by the algorithm and the increase in the complexity of mining come into play. Therefore, market laws come into play, according to which the price is formed by the opposition of supply and demand for an asset.
The benefits of BTC are obvious. Due to the lack of a centralized server that can be taken under control, bitcoin is governed only by economic laws. That is, supply and demand for coins. Ford’s currency had the same property. In his opinion, the rejection of the gold equivalent avoids state control. As a consequence, this will help stop wars around the world and avoid pressure on businesses.
Now the most devoted supporters of bitcoin think so too. They say that the transition to bitcoin or an alternative blockchain-based digital currency will make it impossible to finance military conflicts. States will not be able to collect the required amount of money through inflation.
The “gold equivalent” has its advantages, for example, it complicates the issue of new money for the state and helps to maintain the exchange rate. But international financial organizations, the American industrialist said, could take control of the movement of gold between countries. Due to this, an active money market arises, which brings super-profits during hostilities.
Is there a gold equivalent now
Convertibility between the national currency and gold bars has not existed for a long time. In the United States of America, remnants of this standard were destroyed in 1971 during the Nixon era. But the so-called “quasi-standard” remained, which was valid until 1973. And the last mention in the laws that linked the dollar to gold disappeared by 1976.
That is, the money supply that is in circulation in the country is not provided by the gold reserves of a particular state. Therefore, we can assume that Ford’s ideas were partially realized, albeit with certain reservations.
Satoshi Nakamoto did not explicitly mention Ford as the inspiration for Bitcoin in his white paper. But associations were tracked by more than one Internet user. On specialized forums, entire sections are devoted to this issue. Some users jokingly suggest that Satoshi is a modern reincarnation of Ford. Moreover, the owner of the car factories himself believed in the reincarnation of souls.
What is the result
It is not so important who invented bitcoin, Ford or Nakamoto, and what it is provided with. The main thing is that this cryptocurrency, as well as alternative coins, have already firmly entered the global economic system.
Cryptocurrency allows you to earn money by investing. For example, you can store it on your wallet and make a profit . Successful investors have already managed to get their money, despite the rejection of crypto by government agencies.