Not Bitcoin, But Assignat — The Currency Created from... Land?
If today we hear people panicking about 5% inflation or a 20% rise in oil prices, imagine living in a world where the price of *bread* rose 1,000% in two months — and that was still a 'slow' version. This isn't a scenario from a dystopian movie. It actually happened in France between 1789 and 1796 during the French Revolution. And what was the currency behind it? Not gold, not silver, not even a promise from a central bank — but *land*. Yes, land seized from the Catholic Church and nobles became the 'collateral' for printing paper money called assignat.
The first assignat was issued in 1789 as a 'state debt certificate,' but quickly became legal tender. It was printed in millions of notes — not because the economy was growing, but because the treasury was empty, the army needed to be paid, and the revolution couldn't stop just because there was no money. Each assignat had a small phrase that roughly said: *‘Guaranteed by national land.’* Sounds legitimate, right? But imagine: if everyone suddenly demanded to 'exchange the land' at the same time, who would give it? The answer: no one. The guarantee was like a promise, *‘you can take my house if you want’* — but the house had already been sold five times before you got there.
When Paper Money Was Heavier Than Its Value
Have you ever heard the term *hyperinflation*? In France back then, it wasn't an academic concept — it was a daily experience. In the early 1790s, 1 assignat = 1 livre (an old currency unit). By 1793, it had dropped to 50 cents. By 1795, 1 assignat = only 3 cents. And in February 1796 — *the final nail*: the government announced that assignat was *no longer valid*. All the paper money printed since 1789 — over 45 billion livres — was *thrown into the trash of history*. Imagine: you save money under your mattress for seven years, then one morning you're told: *‘It's just blue and black paper.’* No value. No compensation. No forgiveness.
And the story didn't end there. The government tried to 'revive' trust by creating a new currency: mandats territoriaux, also based on land — but this time with more beautiful designs, more security features, and… more fraud. Mandats fell *faster* than assignat. Within 40 days, its value dropped 75%. People started using paper money as fish wrappers, tablecloths, or — most tragically — firewood. A Paris journalist wrote: *‘We don’t burn wood anymore. We burn money.’*
Who Wrote All This — And Why Did He Believe in It?
Not a regular historian. This is the work of Andrew Dickson White, an American diplomat who later became the first president of Cornell University in the US and one of the founders of modern education in America. He didn't write from textbooks — but from personal notes, government documents opened after the revolution, and interviews with former financial officials, merchants, and even former Bastille prisoners. The book was first published in 1876 — and *not* as a historical reflection, but as a direct warning to the world: *Don’t believe in money without a real foundation — because that belief can vanish in one night.*
White also revealed a surprising fact: inflation wasn't caused by 'greedy citizens' or 'dishonest traders,' but by *repeated political decisions that ignored physical economic limits*. Every time the government printed more assignat to cover deficits, they didn't solve the problem — they just shifted the burden onto ordinary people. And that burden ultimately hit hardest the small shopkeepers, teachers, barbers, and housewives who had no power to raise prices as fast as the government increased the money supply.
Lessons That Still Echo Today
We may think: ‘That was the past. Now we have central banks, gold reserves, and advanced monitoring systems.’ True — but the basic principle remains the same: the value of money depends on trust — and trust is as fragile as glass if pushed too far. During the 2020–2022 pandemic, many countries printed trillions of dollars — and although it didn’t reach the level of assignat, we saw food, rent, and oil prices soar around the world. Not because of a 'conspiracy,' but because *the amount of money increased, while goods and services couldn’t keep up*. Just like the 1790s: more paper money + scarcity of goods = rising prices. Period.
Most importantly to remember: inflation is not just a number on an economic graph. It is a *silent transfer of wealth*. It takes value from people’s savings, reduces the purchasing power of pensions, and gives an advantage to those who can borrow money cheaply — usually large corporations or asset owners. Assignat teaches us a timeless lesson: *Money created without real value will eventually devour its creators themselves.*
So, What Can We Do?
First: don’t assume that 'paper money' is an eternal entity. It is a social contract — and like any contract, it can be canceled. Second: read history not for nostalgia, but to *recognize patterns*. Assignat, the German mark in 1923, the Zimbabwe dollar in 2008 — all started from the same idea: *‘We can print more, because we need to.’* Third: learn about truly resilient assets — not just gold or Bitcoin, but skills, knowledge, human networks, and the ability to adapt. Because in a currency crisis, what lasts is not money — but *what you can create, teach, or build with your own hands.*
So the next time you hear news like ‘the central bank printed an additional RM50 billion,’ don’t just scroll. Stop for a moment. Imagine Paris in 1795. Imagine a full bag of paper that couldn’t buy a cup of coffee. And ask yourself: *What am I believing in today — and is it really based on something… or just a hope written on paper?*
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*Rujukan: [Fiat Money Inflation in France — Wikipedia](https://en.wikipedia.org/wiki/Fiat_Money_Inflation_in_France)*
French Paper Money Fell by 99% — What Happened in 1796?. Imagine: one day, your salary is enough to buy bread. The next day, you need to carry a full bag of paper money to buy the same loaf. That was the reality of France at the end of the 18th century — not fiction, not hyperbole, but history meticulously recorded by an American diplomat who witnessed it firsthand.. Not Bitcoin, But Assignat — The Currency Created from... Land?
If today we hear people panicking about 5% inflation or a 20% rise in oil prices, imagine living in a world where the price of bread rose 1,000% in two months — and that was still a 'slow' version. This isn't a scenario from a dystopian movie. It actually happened in France between 1789 and 1796 during the French Revolution. And what was the currency behind it? Not gold, not silver, not even a promise from a central bank — but land . Yes, land seized from the Catholic Church and nobles became the 'collateral' for printing paper money called assignat .
The first assignat was issued in 1789 as a 'state debt certificate,' but quickly became legal tender. It was printed in millions of notes — not because the economy was growing, but because the treasury was empty, the army needed to be paid, and the revolution couldn't stop just because there was no money. Each assignat had a small phrase that roughly said: ‘Guaranteed by national land.’ Sounds legitimate, right? But imagine: if everyone suddenly demanded to 'exchange the land' at the same time, who would give it? The answer: no one. The guarantee was like a promise, ‘you can take my house if you want’ — but the house had already been sold five times before you got there.
When Paper Money Was Heavier Than Its Value
Have you ever heard the term hyperinflation ? In France back then, it wasn't an academic concept — it was a daily experience. In the early 1790s, 1 assignat = 1 livre an old currency unit . By 1793, it had dropped to 50 cents. By 1795, 1 assignat = only 3 cents. And in February 1796 — the final nail : the government announced that assignat was no longer valid . All the paper money printed since 1789 — over 45 billion livres — was thrown into the trash of history . Imagine: you save money under your mattress for seven years, then one morning you're told: ‘It's just blue and black paper.’ No value. No compensation. No forgiveness.
And the story didn't end there. The government tried to 'revive' trust by creating a new currency: mandats territoriaux , also based on land — but this time with more beautiful designs, more security features, and… more fraud. Mandats fell faster than assignat. Within 40 days, its value dropped 75%. People started using paper money as fish wrappers, tablecloths, or — most tragically — firewood. A Paris journalist wrote: ‘We don’t burn wood anymore. We burn money.’
Who Wrote All This — And Why Did He Believe in It?
Not a regular historian. This is the work of Andrew Dickson White , an American diplomat who later became the first president of Cornell University in the US and one of the founders of modern education in America. He didn't write from textbooks — but from personal notes, government documents opened after the revolution, and interviews with former financial officials, merchants, and even former Bastille prisoners. The book was first published in 1876 — and not as a historical reflection, but as a direct warning to the world: Don’t believe in money without a real foundation — because that belief can vanish in one night.
White also revealed a surprising fact: inflation wasn't caused by 'greedy citizens' or 'dishonest traders,' but by repeated political decisions that ignored physical economic limits . Every time the government printed more assignat to cover deficits, they didn't solve the problem — they just shifted the burden onto ordinary people. And that burden ultimately hit hardest the small shopkeepers, teachers, barbers, and housewives who had no power to raise prices as fast as the government increased the money supply.
Lessons That Still Echo Today
We may think: ‘That was the past. Now we have central banks, gold reserves, and advanced monitoring systems.’ True — but the basic principle remains the same: the value of money depends on trust — and trust is as fragile as glass if pushed too far. During the 2020–2022 pandemic, many countries printed trillions of dollars — and although it didn’t reach the level of assignat, we saw food, rent, and oil prices soar around the world. Not because of a 'conspiracy,' but because the amount of money increased, while goods and services couldn’t keep up . Just like the 1790s: more paper money + scarcity of goods = rising prices. Period.
Most importantly to remember: inflation is not just a number on an economic graph. It is a silent transfer of wealth . It takes value from people’s savings, reduces the purchasing power of pensions, and gives an advantage to those who can borrow money cheaply — usually large corporations or asset owners. Assignat teaches us a timeless lesson: Money created without real value will eventually devour its creators themselves.
So, What Can We Do?
First: don’t assume that 'paper money' is an eternal entity. It is a social contract — and like any contract, it can be canceled. Second: read history not for nostalgia, but to recognize patterns . Assignat, the German mark in 1923, the Zimbabwe dollar in 2008 — all started from the same idea: ‘We can print more, because we need to.’ Third: learn about truly resilient assets — not just gold or Bitcoin, but skills, knowledge, human networks, and the ability to adapt. Because in a currency crisis, what lasts is not money — but what you can create, teach, or build with your own hands.
So the next time you hear news like ‘the central bank printed an additional RM50 billion,’ don’t just scroll. Stop for a moment. Imagine Paris in 1795. Imagine a full bag of paper that couldn’t buy a cup of coffee. And ask yourself: What am I believing in today — and is it really based on something… or just a hope written on paper?
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Rujukan: Fiat Money Inflation in France — Wikipedia https://en.wikipedia.org/wiki/Fiat Money Inflation in France
