VOLUME 1: IS THE CODE THAT MUST BE MONEY?
Cryptocurrency, as well as other things, can be considered money if accepted. But to be considered a currency, money needs to be added.
Money must have all these 7 properties can perform all its functions. Bitcoin has these seven factors: 1. Circulation: Many business units have allowed Bitcoin payments.
2. Identity: Bitcoin can not be faked.
3. Breakable Bitcoin:
4. Durability: Bitcoin does not last long.
Easy to transport: Bitcoin is easy to transport.
6. Scarcity: Bitcoin has only 21 million coin.
7. Uniformity: Bitcoins are the same.
The primordial form of the economy is the direct exchange of goods for the lack of money to mediate transactions.
🚀The currency has to perform three functions: 1. Medium of Exchange
: In ancient times, using commodities as an exchange agent => as currency => as goods, there are two types
a) Non-metal (salt, shell, chicken, chicken feathers)
=> Easy to damage.
= The target is in some areas
Cashew nut was used around 1200 BC, something to bring in the desert is not able to eat because desert people do not know what this is.
=> Poor liquidity
b) Metallic currencies (gold, silver)
=> Initial metal currency is roughly processed.
=> 3000 BC, rings were used as money in Egypt and Mesopotamia. They are also known as ring money.
They are also called ring money but do not consider them as currency
=> No metamorphosis over time
=> Jewelry is always rare, where does not accept.
Contemplate:
_ From the form of money first, itself has real value (instricnt value) when no role for money.
Pig as gold with chicken of course everyone understands what its value itself.
🚀Function 2: Unit of Account -
In 650 BC, the Lydia people used electrum (a natural mixture of gold and silver) to cast out stamped coins to distinguish the false. Today, people call this the first currency of mankind.
The face value of 1 stater is the largest one-to-one 1/24, the world's only 12 1 Stater from 650 BC
In 561 BC, the Lydians learned the technique of splitting gold from silver (some speculated that the technique they learned was to separate silver from gold) and the first gold coin. That is why ancient gold coins are almost pure.
The first gold coin was born in 561 BC
However, due to having to touch the newly used to make the gold coins worn out.
Inheritance:
_ The nominal value of gold coins = face value
_ The value of money itself = the amount of gold used to cast money into money
_ The value of money itself is always smaller than the nominal value due to traffic wear . People have always accepted this currency for over 2000 years.
The real art is in ancient Philip II 359 - 336 BC
🚀Function 3: Store of Value
_ Non-metal currencies can not do this function due to perishability.
Non-metal non-metals are eliminated over time.
Contemplate:
_ This function is the function of monetary value.
It's hard to win enough chickens to buy a building.
Alexander the Great, who collected most of the world gold 336 - 323 BC. Figure Athena
🚀Other functions of money such as Standard of Deferred Payment
_ Sometimes people are borrowing, paying for rent, paying taxes
_ We all use the money to pay and close the transaction.
_ Money and transactions are not related to the goods.
Contemplate:
_Tien should have purchasing power (demand) relatively stable and sustainable over time, the newly created trust do people accept it for payment.
Gold is just beautiful when ancient people molded into money. Pantikapaion 340 BC
🚀To overcome the weakness of the coins, people make money to represent the goods and most notably gold coins.
_ This paper will represent the corresponding goods stored in the warehouse and allowed to be redeem at any time.
In 1816, gold officially became a measure of value in Britain, before the paper money here is not guaranteed in gold. In the United States, the first 1863 gold coins were issued. The value of gold coins is the corresponding gold they represent.
It can be said that the currency from the appearance to this time is always made of gold or representing the gold.
$ 100 1863 Gold Certificate is very rare and the money in the picture has been liquidated for 60 billion
🚀Gold is here.
Gold is the only material that is not only for beauty but for the history of human trust given to it.
1931, countries begin to give up gold.
There is no need to have gold to ensure that legal money is guaranteed by the state and circulated for hours.
Jesus was sold for 30 pieces of silver, the shekel, but 30 pieces of which were unknown, but they were cast for only five years 66-70 AD. This piece of the front is labeled EW, meaning year 5 and will be AD 70 years around April - August
🚀🚀Many people say legal money has no intrinsic value. Again, I think the value of money is the amount of money that can be exchanged. Only a bad currency can have a corresponding standard of ease and easy to understand and do not need to prove that this standard is true. For legal money, you will need to use a lot of complex mathematical calculations to figure out its true value.
Cleopatra VII is one of the most beautiful women of all time. This tetradrachm was cast in 41-40 BC
Money coding can do all three functions as currency, but that does not mean that it can do the job well. Gold has done well for many years but is also eliminated.
Silver can also be beautiful without losing gold. 400 BC Dionysius I
Being unable to do a good monetary role as a fixed sum does not mean that the pre-coding value is not valid, so is gold .
VOLUME 2: WHY DOES THE CODE DO NOT MAKE MONEY WHICH MAKES A MONEY?
