Random Blog on Crypto (Part 02) : Centralized and Controlled Crypto System can be a Best Monetary System

Many of us have ideas about the monetary system. Once there was barter and later came gold and silver coins. Notes or currency originated to avoid the hassle of carrying them. These currency systems were once backed by gold or some other asset, but later the system of backing up various assets has been removed. But in modern times the currency is released into the market without any kind of gold reserve or backup. Hence it has become paper money in many cases. For example, the dollar became paper money after the Nixon shock of 1971. This applies to many countries' currencies. The system of holding different types of bills or asset valuations as reserves against currency was a good system. But the latter method is not to be adopted at all. Printing currency and not depositing its equivalent amount of wealth is very harmful for the economy. It has to face various problems including inflation. Especially in this era of globalization, its impact is very negative on the economy of a country.

For any country there should be data about the circulation of the currencies in that country. To understand how the monitoring system of the country is running or how much currency is being used, it is very important for the government to know how much currency is circulating from which sector to which sector. When a person buys something he gives the currency he has to the seller and the seller buys the raw material with this currency, the raw material seller may have deposited this currency in a bank or received it from another person through a banking channel. When all these circulation issues are transparent, it will be very easy to calculate who owns how much wealth and what amount of tax will come.

For example: If a person says that he has invested 100,000 dollars, then surely that invested money will be deposited in the account of another party or more than one person. That is, what is cost to one is income to another. So, even if you want, you can't pretend that you have invested or lost money with a fake bill. This will be possible when everything starts being transacted through digital currency. If you pay a fare to a taxi driver it is an expense to you as well as an income to the taxi driver. Since the exchange is in digital currency, the transaction will be recorded in both places.

Cryptocurrency is a currency system that is a type of digital system where funds are transferred from one person to another's wallet and does not require any paper currency. Any country's monetary system can be kept stable if a digital currency-like system can be introduced by controlling cryptocurrencies through a centralized blockchain. And complications related to taxation and fraud will be easily removed. Although the gold system is the best, the crypto system may be the second best alternative to the gold system.

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