Post
Topic
Board Bitcoin Discussion
✨✨✨ The Reason We Use Money ✨✨✨
by
ShortCoins
on 14/12/2017, 15:14:24 UTC
The reason we need money is to have a medium to exchange goods and services for each other. Money is the way we divide the world's resources.

What is money?
Money is a FUTURE claim on services or goods. It represents an amount of goods one is entitled to collect on


Now lets think about how this differs from crypto currency

The reason we need crypto is to exchange goods and services for each other using a digital medium and to provide it in a decentralized but secure way.


What is crypto?
Crytpo is a PAST claim on services or goods. It represents an amount of goods or services that one has already used



Here is what I mean by the difference between a future and a past claim on goods or services. Money is a future claim on the world's resources (including labor and services). You can use that money at a future point to collect in on what you are 'owed'. This differs dramatically from crypto. Crypto is actually a past claim on services or goods, because it cannot be earned without destroying resources. The value of crypto comes from the fact that electricity, man hours, and hardware are destroyed in order to create. We are essentially destroying resources in order to make a medium that will allow us to divide the rest of the resources up. Instead we should be earning currency based on the good things we do and the resources we protect. We should be incentivized to save the world, not destroy it.

I think the process of adopting crypto is too much of a sacrifice when it comes to resources. The very things we are trying to divide up we are destroying. We arguably need money to divide the resources, but we don't need to destroy resources just to make the money