Recently, Simon Dixon, entrepreneur, former investment banker and author of the book Bank to the Future, explained in an interview with Epicenter Bitcoin that our financial problems are derived from money, “simply because money is debt.”
Since the birth of Bitcoin in 2009, many economists have talked about the digital currency, and its potential to disrupt the financial sector and solve most of the financial problems we have today. Dixon explained the concept behind money and banks, and more importantly, what money actually is. He said:
“Positive balance in a bank account simply is somebody else’s debt, which is created into existence by the banks. 97% of the money in the economy is created this way, which means the only way to drive sustainability of an economy is to have more debt.”
In order to have a sustainable and debt free economy Dixon explains, is to use a decentralized currency like bitcoin.
Bank to the Future
Dixon’s book, Bank to the Future states three main problems of today’s financial problems –
- Deposits made with banks are controlled by the banks;
- Banks can spend the deposits at their will. Banks spend the deposits on things which help their shareholders,