When someone doubtful tells you Crypto Currency is made up fake money show them this!
Something interesting struck me today.
Currency has, since its inception 10,000+ years ago been moving further and further away from having intrinsic value
What exactly does that mean?
Let’s go back to the beginning. Or before the beginning of Currency:
We know that currency began around 9000-6000 BC as Cattle were domesticated and crops cultivated. They would be exchanged for services and other crops or food. This was a wholesome sort of currency. Tangible and tasty.
In the millennia that followed, as farming was scaled up, in 3000 BC, Mesopotamia, debts to the temple would be paid in units of barley would be exchanged for a clay tablet. This would serve as a record of the goods delivered.
In 6000 years that that followed many different commodities were used as currency – salt, rum, barrels of beer, chickens, wine & sugar. Eventually we see pieces of silver and gold being used as currency; The birth of the coin which would serve until the 11th century..
Until someone in China decided that all of that was nonsense. Something with inherent value like was way to clunky to serve as currency ! It had to be transported to be traded & that was at great cost.
So the basis of modern monetary theory was developed, a system was developed where you could write me a piece of paper saying you owe me 3000 gold & through the might of the government that piece of paper made it mine.
Suddenly all over China merchants were marching around with pieces of paper saying they owed each other things. They did this for long enough till they realised the paper they held was itself as value-able as the goods or services exchanged.
A piece of paper. Without inherent value. But it would soon be running the world. Madness!
The idea of a currency that was easy to print sounded ridiculous & amazing. The catch? Whilst you could print unlimited paper money, the goods and services they represent were always limited.
The paper currency was only meant to be an IOU on commodities that existed
Since then, currency itself became the focus, being printed more and more, the commodities propping the currencies up, forgotten.
This is the fundamental flaw with modern economics
A world with a limited supply of commodities & services needs a currency that is also has limited supply. By definition it has no value if it is limitless.
Enter: Crypto. In its perfect, realised form it can’t lose value as its can’t be overprinted, copied or forged.* As it’s decentralised no one has enough control over it to manipulate it. The power this brings to individuals, regular people like you or me can’t be overstated.
The inequalities of modern society are widened due to the fact that the only way a regular person can hedge their savings against inflation is by giving their money to a bank who will make money from holding it. Then they might go bust and you’ve lost all your money.
Imagine you didn’t need a savings account you could hedge against inflation with a little hard drive stuffed under your bed
There’s a lot of institutional support coming now as people realise that Bitcoins success is inevitable. But never forget they fought for years to stop this because they knew how much power this would take away from banks to individuals!
In conclusion, cryptos are
Made up ✅
A huge improvement on paper money ✅