December 1, 2020

Cryptheory

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Bitcoin was predicted by Henry Ford a hundred years ago

2 min read
Henry Ford

 

Tone Vays, an analyst and former Wall Street trader, recently discovered fragments from an article entitled Energy Standard. In it, the American businessman Henry Ford predicted bitcoin hundred years ago.

 


Century-old forecast

 

Exactly 99 years ago, Henry Ford planned to develop an energy currency to replace gold. Ford’s goal was to end the wars he claimed to be centered around controlling money. Tone Vays believes this is another proof of why Bitcoin will be the only cryptocurrency that will survive in the future.

 

 

“In the Energy Monetary System, a certain amount of energy will be spent per hour, which would be equal to one dollar.”

 

Ford suggested a currency secured in kilowatt hours (kWh), which is found at Bitcoin. In this way, it would be possible to prevent countries from fighting each other because each of them could use its natural resources.

But in the 1920s, there was no way to turn Ford’s plan into reality. At that time it was impossible to assign an economic value based on energy consumption. Bitcoin – as an energy-supported currency – is supposed to be the only cryptocurrency.

 

Energy consumption

 

The Bitcoin network today consumes approximately 6.9 million kWh of energy, more than Iceland’s energy consumption. However, 74 percent of all mining come from renewable energy sources. Cryptocurrency farms are built mainly in cold areas close to hydropower.

In equivalence to the Bitcoin energy value, the value of this cryptocurrency is expressed in joules, but can easily be expressed in kWh, as predicted by Henry Ford.

 

Summary

 

Henry Ford was one century ahead of his time, but now we know that an energy-based currency can work.

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