In 1921, American industrialist Henry Ford proposed the introduction of an “power forex” that would shape the idea of a brand new economic device — presenting hanging similarities to the peer-to-peer digital coins device mentioned in Satoshi Nakamoto’s 2008 Bitcoin (BTC) whitepaper.
Front web page of the New York Tribune dated Sunday, December 4, 1921. Source: Library of Congress
Bitcoin as an power forex

On Dec. 4, 1921, the New York Tribune posted an editorial outlining Ford’s imaginative and prescient of changing gold with an power forex that he believed may want to spoil the banking elites’ grip on worldwide wealth and positioned an quit to wars. He meant to try this via way of means of building “the world’s finest strength plant” and developing a brand new forex device primarily based totally on “gadgets of strength.”

Ford, who based Ford Motor Company in 1903, advised the publication:

The specifics round forex values “could be labored out whilst Congress cares to listen approximately it,” he stated.

Although Ford turned into in no way capable of strengthen his imaginative and prescient of a fully-sponsored forex, Bitcoin has reputedly vindicated the concept a century later. Since 2009, extra than 18.eight million BTC were created via power-extensive mining that calls for computer systems to clear up an increasing number of complicated math problems. This proof-of-paintings mining system has drawn heavy complaint over its alleged environmental impact — a short-sighted declare that ignores Bitcoin’s abilily to boost up the shift to renewable power.

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Replacing gold, finishing wars

On the relation among gold and conflict, Ford explained:

Some of Bitcoin’s maximum ardent helps trust the cryptocurrency’s sound cash standards may want to cast off conflict via way of means of lowering the state’s capacity to fund battle via inflation. While a gold preferred makes it tougher for governments to inflate their forex, “global bankers,” as Ford explained, managed the majority of the bullion supply. This system of controlling and collecting treasured commodities allowed monetary elites to create an energetic marketplace for cash, which thrived for the duration of wartime.

The remnants of the gold preferred had been deserted in 1971 via way of means of U.S. President Richard Nixon, who stated his authorities might quickly droop convertibility among greenbacks and bullion. The so-known as quasi-gold preferred might ultimate till 1973, with all definitions linking the greenback to bullion eliminated via way of means of 1976. However, in effect, the gold preferred device turned into removed via way of means of the British authorities in 1931, with the U.S. following healthy years later.

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The New York Tribune article circulated on Reddit’s r/CryptoCurrency web page on Saturday, wherein it acquired vast upvotes. While Satoshi Nakamoto in no way stated Henry Ford in on line discussion board posts, a few Reddit customers speculated that Bitcoin’s writer can also additionally were motivated via way of means of the past due industrialist. Others jokingly stated Satoshi turned into certainly Ford’s reincarnate, given the latter’s obvious perception in reincarnation.