Proof of story or where Fiat money comes from
When we talk about currency mining we think of two things, on the one hand we can think of the mines of precious materials such as gold, or on the other hand we think of the mining of cryptocurrencies such as Bitcoin, or Bitcoin Cash, but, I ask you when we talk about mining do you think of fiat money?
In the societies we live in, the common people use money without even knowing how money is created, how it is mined, where it comes from. And that is what I want to talk to you about today. Some time ago, the central banks of the countries backed the money issued by the state with precious minerals, but it no longer works that way. The money is backed by itself, the national economy and the confidence placed in that asset.
Now, since fiat money is no longer backed by gold, states have been printing more and more bills, creating debt and inflation. But all money has an undermining process. Although banks are just adding zeros to bank accounts to increase the "value" of their accounts. But they have a certain protocol that I imagine they apply to create more and more money out of nothing.
This is the Proof of story protocol, which is nothing more than having the ability to argue and convince bank agents with proposals to apply for credit and loans. If we have a story that persuades and convinces to obtain a loan, what we are doing is mining money with our proposal, which is nothing more than telling a story. A story of a project, of a vision. And with this protocol we mine money, which will eventually generate more inflation.
Here in Venezuela, where I was born and where I have been living for years, they have implemented a system of subsidies to millions of people, they call it "El sistema Patria" and it is nothing more than through a virtual system where citizens have registered and through this system, eventually every month, they deposit Bonds, which people then deposit in their bank accounts. And these last few years inflation in Venezuela has skyrocketed in an overwhelming way, but I will tell you about that another time. The truth is that, as citizens, we must know where the money comes from and that is what I wanted to promote with this reflection.
But before closing this article, dear reader, I would like you to tell me if you have ever wondered where money comes from. Thank you for reading...