WTF happened in 1971? 50 years ago today, President Nixon removed value from money by suspending the convertibility of US dollar to gold making US dollar a fiat currency. 37 years later in 2008, Satoshi Nakamoto once again restored value to money.

The Nixon shock as it is called was a shift in economic policy by President Richard Nixon to prioritize jobs and economic growth in the US.

It led to the collapse of the Bretton Woods system of fixed exchange rates by ending convertibility of US dollar to gold. It was said to be temporary but the convertibility was permanently abandoned by 1973.

Nixon shock gave central banks absolute power and control over their own money and made it easy to manipulate supply and meddle with interest rates and velocity of money. It proved the catalyst for stagflation in the 1970s as US dollar became devalued.

The damaging economic effects of the Nixon shock are being felt till this day but now there is a Plan B thanks to Satoshi Nakamoto.

WTF happened in 1971