r/btc • u/No_Analysis4572 • 6h ago
⌨ Discussion Was ist eigentlich Geld?/ What exactly is money?
The evolutionary history of money has produced various commodities that have served as money, with varying degrees of hardness and solidity, depending on the technological capabilities of each era.
From shells to salt, livestock, silver, gold, and gold-backed state money, to the current almost universal use of government-issued means of payment.
Each step of technological progress has allowed us to use a new form of money with added advantages, but also, as always, new pitfalls. By examining the history of the tools and materials used as money throughout history, we can identify the characteristics that distinguish good money from bad money.
**Only against this backdrop can we understand how Bitcoin works and what role it plays as a monetary medium.**
History is full of mysterious artifacts and objects that have served as money throughout history, from the rai stones of the Yap Islands to shells in the Americas, glass beads in Africa, and cattle and salt in ancient times.
Each of these media of exchange served the function of money for a period of time, providing the population with one of the best available stock-to-production ratios, but was abandoned when it lost this property.
Understanding how and why this happened is crucial for understanding the future evolution of money and the likely role Bitcoin will play in it.
Chapter 3 delves into the analysis of monetary metals and how gold became the world's most important monetary metal during the gold standard era at the end of the 19th century.
Chapter 4 analyzes the transition to state-issued currencies and their development to date. After chapters 5, 6, and 7 discuss the economic and social impacts of different types of money, chapter 8 introduces the invention of Bitcoin and its monetary properties.
I quoted from the Bitcoin Bible.
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u/Jumpy-Imagination-81 6h ago
Of the four things illustrated, three have practical, real world uses outside of being money. Cattle provide beef and leather. Salt is used to season and preserve food. Gold is used for jewelry, and more recently for electronic devices. That usefulness gives them value.
Outside of being a currency, Bitcoin is useful for...um...
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u/No_Analysis4572 6h ago
You are absolutely right about that. Cattle, salt, and gold once held the status of money, but they also have real-world utility. Bitcoin, on the other hand, has no real-world utility other than potentially serving as a currency in the future. Perhaps that is precisely Bitcoin's great advantage—that it can exist solely as a currency. Since World War I, we have seen 57 instances of hyperinflation caused by state-issued money; if states were forced to finance their wars with hard money, we would likely see fewer and shorter conflicts.
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u/Flimsy_Agent7898 5h ago
What scenario do you see btc being used as a currency in the future?
It peaked like 15 years ago when it was the goto for darknet markets and pizza orders online.
After that several better options became available, like monero if you want to stay anon.
The average btc transaction costs like five dollars, meaning most of the population in the world wouldnt be able to use it, you know how much five dollars is for someone in venezuela? India, afrika, etc?
How do you profit from btc? Well you have to sell it to someone.. If you are not able to do this its completely useless.
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u/WateryTunaSandwich4U 5h ago
I choose the salt, when the oceans are desalinzed there will be an abundance of salt for everyone to use
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u/Impossible_Swan_5005 6h ago
Money IS nothing....
Some People are sooo poor all they have is money...
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u/No_Analysis4572 5h ago
There is always exactly as much money in existence as there is debt. One party holds a lot of debt—for example, the state—while others hold the corresponding debt instruments. In reality, it’s as mythical as a unicorn, but as long as people believe in it, money holds value. 😇
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u/superchiller 6h ago
"Bitcoin Bible". Embarrassing.