According to U.Today, renowned Israeli philosopher Yuval Noah Harari, acclaimed for his best-selling book 'Sapiens', has recently criticized Bitcoin, labeling it as 'a currency of distrust'. Harari argues that even though Bitcoin supporters may have valid reasons to be skeptical of banks, their preference for the leading cryptocurrency is primarily rooted in their distrust of human institutions. He considers this an 'alarming development', as money is intended to foster trust among strangers.
Harari expressed his understanding of the reasons for this distrust, but reiterated his concern about the implications. He expressed hope that humanity will find ways to establish trustworthy human institutions instead of resorting to technologies that breed distrust. Harari emphasized that humans have been able to control the world because they have learned to trust each other. He cautioned that if humans place all their trust in algorithms, these could potentially take over the world.
Harari further explained the role of the financial system in creating trust. 'Farmers grow food. Shoemakers make shoes. What is the function of the financial system? Finance creates trust,' he stated. He pointed out that different financial systems are designed to foster trust among strangers, enabling them to collaborate on shared projects.
Harari also noted that in the past, there was minimal trust in institutions like banks and governments, leading to money being minted from gold. This scarcity of gold limited the amount of money and consequently, economic cooperation. Today, he observed, 90% of money is merely computer data, a concept that is difficult for humans to grasp.
In a previous argument against the use of artificial intelligence (AI) in finance, Harari warned that this technology could make financial regulation even more opaque for humans. He advocated for people to first understand how AI works and regulate it before integrating it into the financial system. Harari's philosophy posits that humanity is largely driven by myths that enable large-scale collective cooperation.
