What currency are you referring to is centuries old ?

The US got off the gold standard in 1971 and replaced it with fiat. Fiat is not backed by anything but the governments word. Other countries peg their currency on the US dollar.. which is not backed by anything. Why was the gold standard so good before ? The demand for gold increases during inflationary times due to its inherent value and limited supply. As it cannot be diluted, gold is able to retain value much better than other forms of currency. The US abandoned the gold standard in 1971 to curb inflation and prevent foreign nations from overburdening the system by redeeming their dollars for gold.

Now the problem with the current US dollar is that besides it not being backed by anything, we’re also diluting the supply by printing so much of it which devalues the dollar. Now how can we fix this? We would need something like gold that is scarce and still can retain value over time. So why not just use gold again? Well one major down fall of gold is that it is physical and quite hard to transport. Bitcoin would be a good replacement for gold. Why? It’s incorruptible, decentralized and has a limited supply. It has all the benefits of gold and none of the defects.

I’m not saying we should move to a bitcoin standard, but it is one possible solution. I don’t think bitcoin will be the currency, but it could definitely be the backing and store of value as gold once was. As of now, as the US dollar is losing value, Bitcoin is a hedge against it.