Before Central Banks, banking was decentralized and it was a mess.
Well, back then the communication network was not sufficient to support a decentralized monetary/banking system. I think Bitcoin has proven that that is no longer the case.
Of course, not everything can be decentralized, but it will be fun to see what happens.
It was a mess because each bank issued their own notes.
BTC isn't decentralized banking if you are using the term correctly. Its more of a P2P public ledger system. People say its decentralized because there's no Central Bank that regulates the supply of money
But its worse than Central Banks because the supply is artificially limited w known timeframe. That's the reason why it attracts speculators.
Money is only useful if it helps stimulate economic activity. Otherwise its just an abstract concept.
The incentive of Central Banks are not to make money (profit). This is just some misunderstood myth in the bitcoin world. Bitcoin speculators spread this fear to get lemmings into bitcoin and drive up price. The Central Banks incentive is to keep the economy going. They increase money supply in times where liquidity is needed and the decrease supply when discipline is needed. Elasticity vs Discipline is the money view of Central Bankers.
If economies had no Central controls they would be subject to boom & bust business cycles. And that can lead to catastrophe like what we saw in Great Depression leading to Weinmar hyperinflation leading to WW2
