The point is that every time you give someone centralized control over the money supply you are giving them enormous power. In this article, we are going to talk about the problems of a centralized monetary system in detail.Click here to know about litecoin.
When banks have the mandate to create money, they basically control the flow of value in the world. This gives them the almost unlimited power they have today. A small example of how power corrupts can be seen in the Wells Fargo scandal in the US.Visit this site to know about litecoin.
Where the employees of this bank secretly created millions of bank accounts and cards NOT authorized by their customers. All to inflate the bank’s income, without its customers knowing for years.
If the interests of the central authority are not aligned with the people it controls, there may be poor money management. For example, print a lot of additional money to save a certain bank or institution from a collapse.
The problem of printing too much money is that it causes inflation and this basically steals some of the money you already have. An extreme example of this is Venezuela. Where the government has printed so much money and its value has fallen so much that people are no longer counting money. They prefer to weigh it because it is faster if you have to use thousands of tickets to buy any item.
Basically, you are giving all control of your money to the government or bank. At any time, the government can arbitrarily freeze your account and deny you access to your funds.
Even if you only decide to use cash to “protect yourself,” the government can at any time cancel the legal status of its currency.