Its tiring to run in circles Snowshow, so lemme explain what you didnt get yet.
1. What’s money?
- A good that enables a system of indirect trade(contrary to a barter system)
- Has 3 main properties ->
1. Ability to hold value over time(Store of Value)
2. Ability to be easily sent and accepted over large distances(Medium of Exchange)
3. Ability to be easily grouped and divided(Unit of Account)
2. How are these properties achieved?
- A Store of value needs
-> 1. Scarcity(Supply relative to other goods)
Bitcoin(21 million limit), Fiat(unlimited and rising), Gold(Scarce, but not limited)
-> 2. Durability(No loss in functionality with repeated use)
Bitcoin(digital, so durable), Fiat(mostly digital now, but less durable), Gold(was the most durable once, could still be considered the most durable depending on the pov)
- A Medium of Exchange needs
-> 1. Acceptability(Used and accepted by others)
Bitcoin(still low), Fiat(highest), Gold(high, but not everywhere)
-> 2. Portability(Easily moveable across distances)
Bitcoin(extremly easy and fast, can move faster than the person itself, least costly solution for high amounts today), Fiat(Bills need to be transported manually(also dangerous), banking system takes a long time over large distances, need to be converted into different currencies), Gold(terribly hard, expensive and dangerous)
- A Unit of Account needs
-> 1. Divisibility(Easily dividable into smaller units)
Bitcoin(Easy, 8 decimal places), Fiat(also good), Gold(terrible, needs a lot of work)
-> 2. Fungibility(1 unit is the same as the other)
Bictoin(All units are the same, altough some people argue that the history of coins can affect its desirability for others, cant be counterfeited), Fiat(Bills are the same, but higher ones arent accepted everywhere, can be counterfeited, less relevant for digital fiat), Gold(theres different coins with different desirabilities, also its not easy to verify real gold for everyone)
Now what does only Bitcoin have -> Immutability(transaction finality).
3. What speaks for Bitcoin as money?
- Its superior in all properties listed above, except acceptability. If you think a potential money with superior propierties can gain acceptance over time, then its smart to invest in it, but know the risks.
- Greshams law(check it out yourself)
https://www.britannica.com/topic/Greshams-law
Theres for sure more to say, but this is enough for now. When you can debunk these points we can go on further.
1. What’s money?
- A good that enables a system of indirect trade(contrary to a barter system)
- Has 3 main properties ->
1. Ability to hold value over time(Store of Value)
2. Ability to be easily sent and accepted over large distances(Medium of Exchange)
3. Ability to be easily grouped and divided(Unit of Account)
2. How are these properties achieved?
- A Store of value needs
-> 1. Scarcity(Supply relative to other goods)
Bitcoin(21 million limit), Fiat(unlimited and rising), Gold(Scarce, but not limited)
-> 2. Durability(No loss in functionality with repeated use)
Bitcoin(digital, so durable), Fiat(mostly digital now, but less durable), Gold(was the most durable once, could still be considered the most durable depending on the pov)
- A Medium of Exchange needs
-> 1. Acceptability(Used and accepted by others)
Bitcoin(still low), Fiat(highest), Gold(high, but not everywhere)
-> 2. Portability(Easily moveable across distances)
Bitcoin(extremly easy and fast, can move faster than the person itself, least costly solution for high amounts today), Fiat(Bills need to be transported manually(also dangerous), banking system takes a long time over large distances, need to be converted into different currencies), Gold(terribly hard, expensive and dangerous)
- A Unit of Account needs
-> 1. Divisibility(Easily dividable into smaller units)
Bitcoin(Easy, 8 decimal places), Fiat(also good), Gold(terrible, needs a lot of work)
-> 2. Fungibility(1 unit is the same as the other)
Bictoin(All units are the same, altough some people argue that the history of coins can affect its desirability for others, cant be counterfeited), Fiat(Bills are the same, but higher ones arent accepted everywhere, can be counterfeited, less relevant for digital fiat), Gold(theres different coins with different desirabilities, also its not easy to verify real gold for everyone)
Now what does only Bitcoin have -> Immutability(transaction finality).
3. What speaks for Bitcoin as money?
- Its superior in all properties listed above, except acceptability. If you think a potential money with superior propierties can gain acceptance over time, then its smart to invest in it, but know the risks.
- Greshams law(check it out yourself)
https://www.britannica.com/topic/Greshams-law
Theres for sure more to say, but this is enough for now. When you can debunk these points we can go on further.
This is a great text, mate! At first I couldn't believe it wasn't plagiarised, so I checked it, and it's 100% unique!
Well, I'll say it agian, imo it's an amazing text. It's simple and yet informative. I can't imagine a better way to explain someone that BTC is not only money, but it is better money than fiat and gold.
Thank you for taking effort to write it.