Quote from: kxwhalexk on July 24, 2021, 10:12:10 AM

There are probably three reasons for the collapse of the Bretton Woods system：
1.The growth of gold is much lower than the growth of productivity.
2.Uneven distribution of gold reserves.Gold coin minting and free circulation are destroyed
3.The outbreak of the First World War led countries to use gold to buy arms. Not freely convertible

Then we simply replace gold with Bitcoin to see if Bitcoin can solve these problems.
1.The output of Bitcoin is diminishing, and the final output of Bitcoin is close to 21 million. After that, productivity continued to develop. It also leads to fewer and fewer bitcoins needed to purchase items.
2.When a powerful country attaches importance to Bitcoin, it will of course build Bitcoin mining machines madly. Such a large amount of mining rights have returned to the hands of big countries, and a large amount of chips, it is easy to manipulate the price to achieve the purpose of allowing the holder to hand over the chips.In an even more extreme case, printing money to buy bitcoins on the market, I'm not sure if I have been doing so now.
3.When the war breaks out, will the network be cut off? After the big powers use Bitcoin to buy arms, the circulation on the market will of course also decrease.

Bitcoin cannot solve these problems inherent in gold, so why do you need to re-establish a new Bretton Woods system anchored by Bitcoin?

Thank you for your wonderful reply. As mentioned in my article, Bitcoin has many similar properties to gold, but at the same time Bitcoin has more unique advantages than gold. In my opinion, the issuance of legal currency must be supported by value, rather than unlimited issuance without any restrictions. Bitcoin is the best value support. The biggest advantage of Bitcoin over gold is that no one can control it. The government can prohibit the currency status of gold through laws, but it is difficult for the government to directly prohibit the circulation of Bitcoin. In the end, the government can only adapt to the existence of Bitcoin. When a huge financial crisis erupts in human society in the future, the existing world currency may collapse. When human society rebuilds the currency system, it will find that Bitcoin is the best choice. Therefore, a brand new Bretton Woods system centered on Bitcoin may be established.