In 1921, American industrialist Henry Ford proposed the creation of an "energy currency" that could form the basis of a new budgetary arrangement — offering striking similarities to the peer-to-peer electronic cash organization outlined in Satoshi Nakamoto'southward 2008 Bitcoin (BTC) white paper.

Front end folio of the New York Tribune dated Sunday, Dec. four, 1921. Source: Library of Congress

Bitcoin as an energy currency

On Dec. 4, 1921, the New York Tribune published an article outlining Ford's vision of replacing gold with an energy currency that he believed could pause the banking elites' grip on global wealth and put an end to wars. He intended to do this past edifice "the world's greatest power plant" and creating a new currency arrangement based on "units of power."

Ford, who founded Ford Motor Company in 1903, told the publication:

"Under the energy currency system the standard would be a certain corporeality of free energy exerted for one hr that would be equal to one dollar. It's simply a case of thinking and calculating in terms different from those laid down to us by the international banking grouping to which we have grown so accustomed that we think there is no other desirable standard."

The specifics effectually currency values "will be worked out when Congress cares to hear about it," he said.

Although Ford was never able to advance his vision of a fully-backed currency, Bitcoin has seemingly vindicated the idea a century afterward. Since 2009, more than 18.8 million BTC have been created through an energy-intensive mining procedure that requires computers to solve increasingly complex math issues. This proof-of-piece of work mining has drawn heavy criticism over its alleged environmental impact — a short-sighted merits that ignores Bitcoin's ability to accelerate the shift to renewable free energy.

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Replacing aureate, ending wars

On the relation between gold and war, Ford explained:

"The essential evil of gold in its relation to war is the fact that information technology can be controlled. Interruption the control and you lot terminate war."

Some of Bitcoin's most ardent supporters believe the cryptocurrency's sound money principles could eliminate war past reducing the land'due south ability to fund disharmonize through inflation. While a gilt standard makes it harder for governments to inflate their currency, "international bankers," as Ford explained, controlled the bulk of the bullion supply. This process of controlling and accumulating precious bolt allowed financial elites to create an agile market for money, which thrived during wartime.

The remnants of the gold standard were abandoned in 1971 by United States President Richard Nixon, who said his regime would temporarily suspend convertibility between dollars and bullion. The so-chosen quasi-gold standard would last until 1973, with all definitions linking the dollar to bullion removed by 1976. Nevertheless, in effect, the gilt standard system was eliminated by the British government in 1931, with the U.S. following suit two years later.

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The New York Tribune article circulated on Reddit's r/CryptoCurrency folio on Sat, where information technology received considerable upvotes. While Satoshi Nakamoto never mentioned Henry Ford in online forum posts, some Reddit users speculated that Bitcoin's creator may have been influenced by the late industrialist. Others jokingly said Satoshi was actually Ford incarnate, given the latter's apparent belief in reincarnation.