what is money?

Money is a market-chosen medium of exchange, arising to simplify trade.

  • "Money is a product of the market, a product of voluntary transactions emerging out of the actions of individuals."

    — Murray N. Rothbard

money or currency

What’s the difference?

Money

  • medium of exchange

  • store of value

  • unit of account

  • divisible

  • acceptable

  • portable

  • durable

  • scarce

Currency

  • medium of exchange

  • store of value ❌

  • unit of account

  • divisible

  • acceptable

  • portable

  • durable ❌

  • scarce ❌

ex: gold coinage

Gold works as money. But not good currency.

Money

  • medium of exchange

  • store of value

  • unit of account

  • divisible

  • acceptable

  • portable

  • durable

  • scarce ❌

Currency

  • medium of exchange ❌

  • store of value

  • unit of account ❌

  • divisible

  • acceptable

  • portable ❌

  • durable

  • scarce

ex: a house

As a store of value, a house works. For money or currency, no.

Money

  • medium of exchange ❌

  • store of value

  • unit of account ❌

  • divisible ❌

  • acceptable ❌

  • portable ❌

  • durable

  • scarce ❌

Currency

  • medium of exchange ❌

  • store of value ❌

  • unit of account ❌

  • divisible ❌

  • acceptable ❌

  • portable ❌

  • durable ❌

  • scarce ❌

ex: bitcoin

Bitcoin works as money and currency.

Money

  • medium of exchange

  • store of value

  • unit of account

  • divisible

  • acceptable

  • portable

  • durable

  • scarce

Currency

  • medium of exchange

  • store of value

  • unit of account

  • divisible

  • acceptable

  • portable

  • durable

  • scarce

fiat currency

Government-issued. Government-backed currency.

Like the US Dollar, Euro and Yen.

the fiat problem

Unlimited Supply

Fiat can print without limits. This reduces purchasing power over time.

Inflation

Increase in currency leads to:

  • rising prices

  • eroding savings

  • destruction of wealth

Devaluation

More currency, less value.

Centralized Control

Leads to manipulation and distortions in the market.

Economic Instability

Distortions lead to market Boom and Bust cycles.

Fiat is like building a house on sand rather than rock.

the bitcoin solution

Limited Supply

Unlike fiat, Bitcoin has a stable set supply.

No Inflation

Deflationary supply helps:

  • lower prices

  • increase savings

  • creates wealth

Increase in value

Less supply, more value.

De-centralized Control

No central control, no manipulation or distortions.

Economic stability

Without distortions, stability in the market arises.

  • "Money is a creature of the market; it is not a product of the activities of the legislator."

    — Ludwig von Mises

subjective value

Value is personal.

It’s based on individual preferences and context.

As long as someone’s willing to accept it, anything can be money.

why bitcoin?

It satisfies the needs of money and currency.

It’s accepted in commerce.

In your wallet, its true digital ownership.

It’s money for the Information Age.

Bitcoin is a digital rock to build your digital house upon.

  • "Value does not exist outside the consciousness of men. It is not inherent in goods."

    — Carl Menger