Discuss “What is Money?” below.
In current times of year 2020, and since ever BTC have struggle to meet these Money definitions, namely not being ‘stable’ and therefore very hard to be a useful ‘Unit of Account’ or a ‘Medium of Exchange’ .
Although Maloney’s explainer videos definitely provide more insight into mechanics and basics of the concept of money in a way most people haven’t looked at it yet. But the claim is that they are making the difference clear between Money and currency, while constantly conflating the money, currency and fiat currency. So the essential difference isn’t made clear at all! Currency is in fact a form of money, but currency can also be gold backed or literally gold or silver coins (like it used to be in the past), which means these forms of currency also performed their duty as store of value. It is fiat currency which is a very specific form of currency which stands apart from the broader concept of currency. Money on the other hand can be many different things, but they don’t necessarily have to be currency to be money. In fact any form of commodity or asset can be used as money, but they all have a different level of moneyness which make them either more or less desirable to be used as money. Also the scarcity of each form of money and therefore currency can greatly influence their usability as money and/or as store of value. Fiat currency, although being a form of currency and thus definitely a form of money, tends to be a weaker and riskier form of store of value over longer periods of time, due to losing their value slowly and completely after some period of time. For short term use it works decently well as currency and thus money. However the higher and more rapid the inflation, the faster it needs to be spent or converted to a more solid form of money.
To quote Mike Maloney,
Money is a medium of exchange, a unit of account, portable, durable, divisible, fungible and a store of value over a long period of time.
So far I have learned that currency is paper worth nothing and money is the one that holds value. The characteristics of money are durability , portability , divisibility , uniformity, limited supply, and acceptability. The only difference is -currency = unlimited supply?
money = currency + store of value; currency = medium of exchange, unit of account, portable, durable, divisible, fungible
Money is not the same as currency. Don’t confuse the two, although the majority of people think that money and currency are the same and interchangeable.
Fiat currency fails as money because it’s not scarce. Money has to be scarce to have good potential as a store of value.
Why do we have so many different languages? Why so many different currencies?
The answer was to confuse the nations in Babylon so they would not attempt to challenge the Most High.
But is one global currency and uniting all cultures the altruistic solution???
Yes and no…because Isaiah 14 tells us that the wicked will seek to be like the Most High so likely what comes first is a likely going to seem like the saviour to mankind when in fact it is the opposite…so be not dismayed by the soon to come bells and whistles, the best comes last.