Discuss “What is Money?” below.
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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’ .
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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.
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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.
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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
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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.
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Fiat currency fails as money because it’s not scarce. Money has to be scarce to have good potential as a store of value.
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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.
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As far as I understand:
-money has a value with characteristics such as durability, portability, divisibility
-Currency has got no intrinsic value just like paper worth nothing, the values is given by the governments….
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I agree with you brother.
And not being pegged by any store of value
money is a piece of paper with a number on it the higher the number the more “value” it stores.
The bible tells us only gold and silver are money- it’s portable, durable, and can divisible. Currency is like a river as in certain economic segments it is constantly in movement.
Money is any object that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally, a standard of deferred payment
Money is any object that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally, a standard of deferred payment
Money is a representation of wealth value.
Let’s say by example, I decide that a deck of card is now money just because that one card let’s say the ACE of hearts represent 1 Million of what you have as wealth and other people are willing to take that ACE of hearts for the value it represents, that would be considered as money then.
Money is a true store of value, cannot be inflated with government printing presses, and will always purchase the same amount of goods. Currency can be inflated by governments if it is not backed by real money.
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When wetalk about Money and Currency we have to distinguish !
Currency is a medium of exchange . a uit of account, portable durable divisable and fungable.
Money is all of this but also has a store of its value over a long time.Currency can be printed by the goverments and so they raise the supply!Money is keeping their purchasing power because it cannot be printed by banks and goverments!Currencys are not backed by gold and silver anymore and so they all went to 0 to 100%… National Currencys are a tool used by the goverments and the central banks totake away your time and freedom through steeling your purchasing power!
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Money is store of value and fiat paper currency is not.