"We need to think deeply about the economic function of money"

paynercash

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Quote from: magneto on June 20, 2018, 05:37:01 PM

This is an extremely important thing to understand about fiat currencies - none whatsoever has held their value through history. Not a single one. Fiat currency should not be considered to be money because of the fact that it does not store value efficiently.

This is why bitcoin is such an important thing.

It offers people an alternative way to store their wealth, in something decentralised that will hold its value in the long run. Call it a hedge against fiat currency, if you like. Fiat currency has no intrinsic value, and can be added to circulation whenever the central bank/gov wants to. Bitcoin on the other hand is completely decentralised in its supply.

Money naturally has its own functions that are completely different from each other. There are also common currency deals for the world such as dollars, euros, ... They are money that can be traded everywhere. However, in the electronic market we need to distinguish its own functions. It is also a metric to pay for the transaction but its display is just numbers. Cash conversion is the same. But electronic money is faster and more convenient in every transaction.

The Sceptical Chymist

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Quote from: Don Pedro Dinero on February 23, 2018, 08:38:02 AM

I think bitcoin was the result of some people deeply thinking about the economic function of money.

I agree, and I've also always thought Satoshi Nakamoto is not one person. Makes sense, since no one can find out who he is.

Quote from: Don Pedro Dinero on February 23, 2018, 08:38:02 AM

That’s why bitcoin has a cap of 21 million, as a way to prevent to prevent devaluation.

Yeah, but there can be an unlimited number of cryptocurrencies. I have to wonder how that's going to affect the crypto market as a whole and their utility as actual currency. If bitcoin was the only crypto in existence, I'm sure the price would be through the roof right now, but I'm curious as to what's going to happen when even more altcoins are brought to market--and whether something better than bitcoin will ever be created.

Quote from: yinyangwinwang on February 23, 2018, 02:19:08 PM

It doesn't need to function as a traditional currency because traditional currencies all go to zero and eventually are useless.

But currency as a concept has never been useless. Sure, individual ones come and go, but every country in the world needs a currency. I also think the above sentiment tends to get used as propaganda by people pushing precious metals and I tend to just tune it out. It may very well be that the US dollar, for example, might not die within our lifetimes and perhaps not even the lifetime of our grandchildren.

felicity06

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Quote from: EvaGC on February 23, 2018, 08:24:47 AM

«To successfully manage wealth over the long term, we need to think deeply about the economic function of money, particularly as a store of value but also as a medium of payment and a unit of account. We also need to adopt a more holistic approach to risk, heeding the lessons of economic history: No currency, in particular no fiat currency, has survived the test of time over the very long term.»

Read more: https://medium.com/@globcoin_io/currency-baskets-for-wealth-management-7af7de07a3b4

These are quotes from the study “Overcoming the Notion of a Single Reference Currency: A Currency Basket Approach” written by Helie d’Hautefort and Giuseppe Ballocchi; published by the CFA Institue Research Foundation

Of course we must think harldy about the main fuction of money in developing our economic status.... Because we all know that money runs our world.... In order for the economy fuction well we must have it.... As for today bitcoin is really helpful not only in government but also for every crypto user... Both fiat money and cryptocurrency is really great because we are now using it....

mrcash02

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I believe there are 3 options: To use centralized currencies, to use decentralized currencies or to exchange goods for goods without "money". None of these options look perfect for me, all of them have their advantages and disadvantages, but we have to pick at least one of them to survive in society...

Sometimes to think deeply just makes everything more confused and complex. The economical function of the money isn't to guarantee you 100% stability over your properties (I think that is impossible), if that is your goal, find another way to store your properties and expect money to be only a "medium of payment", this function money accomplishes very well.

magneto

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This is an extremely important thing to understand about fiat currencies - none whatsoever has held their value through history. Not a single one. Fiat currency should not be considered to be money because of the fact that it does not store value efficiently.

This is why bitcoin is such an important thing.

It offers people an alternative way to store their wealth, in something decentralised that will hold its value in the long run. Call it a hedge against fiat currency, if you like. Fiat currency has no intrinsic value, and can be added to circulation whenever the central bank/gov wants to. Bitcoin on the other hand is completely decentralised in its supply.

Uno17

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Money drives people’s lives and it drives the whole world, the world is stagnant without money to manipulate it, and there is no basis at all what is economics means if there is no money involved, indeed money is the motherboard to calculate status of economics we had in our country. So the main function of money to economics is the brain.

elena_rose19

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It's true, I think people must not be complacent of having a single currency and should think of some ways to diversify and improve their economic growth. Cryptocurrency is one of the newest trend that people invests in because it has a lot of potential for success and help in final growth.

wxa7115

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Quote from: jmlona on February 25, 2018, 05:14:36 PM

While I agree with both of you. Gold is limited in that it's not easily used as a currency in itself and banks soon realised it was easier not to have actual reserves of gold to back the currency. This allowed them to use quantitative easing to stimulate economies and sectors and that's why we end up with such inflation.

Bitcoin can survive for 100 years or more but it won't function as a 'traditional' currency would do.

I was under the impression that was the whole point, bitcoin is a different kind of currency it combines some aspects of gold and some aspects of fiat with decentralization, no coin before bitcoin had those characteristics so it should be noted the economies of the world will be unable to function the way they are now and another way to run the world economy must be found if bitcoin becomes the most dominant currency around the world.

FrueGreads

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Quote from: jmlona on February 23, 2018, 11:19:07 AM

The short of it is that there's no ideal. Traditional fiat currencies fail because they are inflationary in nature, bitcoin won't work as a traditional currency because it's deflationary in nature.

Although I must say I'm not "in love" with the current economic system, I do understand that debt and an inflationary system might be important to keep developing the economy. The problem is that people are to greedy, and end up creating "bubble cycles", and that's why we keep having crashes. I think fiat will always exist, but the way banks people print money must be clear and follow very strict rules, and mathematical models, and I don't think that is happening right now, or the models are bad.

I don't think fiat will disappear, but that doesn't mean bitcoin wont find it's place in our economy. I actually think it will be very popular both as a store of value and as a payment method. Other currencies might even be matched vs bitcoin, instead of bitcoin being matched vs them. It's gold reinvented and more functional.

Semleho

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Of course it should be like that. As smart as we are to continue to manage the money economy well. We can coordinate individual activities within an economy. As a regulator of revenue sharing from all members of the community, it can be done as expected. And more importantly create a certain mechanism for bitcoin distribution, running well. Because the various kinds of economic systems have a close connection to accounting. Efficiency obtained by using bitcoin will ultimately encourage trade and labor division which will then increase the productivity of bitcoin and prosperity.

carlisle1

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Quote from: Don Pedro Dinero on February 23, 2018, 08:38:02 AM

I think bitcoin was the result of some people deeply thinking about the economic function of money.

Quote from: EvaGC on February 23, 2018, 08:24:47 AM

«... No currency, in particular no fiat currency, has survived the test of time over the very long term.»

That’s why bitcoin has a cap of 21 million, as a way to prevent to prevent devaluation. The cap is actually going to have to opposite effect (as long as bitcoin keeps becoming more adopted): as time goes by, the value keeps increasing as it is a scarce good.

right,not just like fiats that continuously can be printed and the volume will go higher,not like bitcoin or other crypto that has only limited volume once mined to circulation each value will grow as the extinction may come to this currency if not being tool care by users or handlers

odolvlobo

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This is ICO spam. Nothing more.

pinkflower

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Quote from: EvaGC on February 23, 2018, 08:24:47 AM

«To successfully manage wealth over the long term, we need to think deeply about the economic function of money, particularly as a store of value but also as a medium of payment and a unit of account. We also need to adopt a more holistic approach to risk, heeding the lessons of economic history: No currency, in particular no fiat currency, has survived the test of time over the very long term.»

Read more: https://medium.com/@globcoin_io/currency-baskets-for-wealth-management-7af7de07a3b4

These are quotes from the study “Overcoming the Notion of a Single Reference Currency: A Currency Basket Approach” written by Helie d’Hautefort and Giuseppe Ballocchi; published by the CFA Institue Research Foundation

Thats a shill piece for an ICO. Dont read it.

How dare they quote an economics book and then sneakily put their ICO in there. Only scammers do that.

CHENIEN

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Money is actually our primary basic needs and used to survive to buy something for our daily needs, it is a main based to our economic function which used to provide strong relation towards humanity, if we look back before that money is not yet used by people, they actually adopt the system of barter, and the most powerful parts of economic source at that time is agricultural products, unlike today, we are highly developed and our economic system is adopt the new technology system thats why money today is our strong currency as our medium of exchange. As cryptocurrencies born, most especially bitcoin, we noticed that their value are higher compare to real money, so far, cryptocurrency helps and improves the total development of our economic system nationwide, because cryptocurrency are acceptable globally as an instrument to make money or convertible into real money.

Hydrogen

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Quote from: EvaGC on February 23, 2018, 08:24:47 AM

«To successfully manage wealth over the long term, we need to think deeply about the economic function of money, particularly as a store of value but also as a medium of payment and a unit of account. We also need to adopt a more holistic approach to risk, heeding the lessons of economic history: No currency, in particular no fiat currency, has survived the test of time over the very long term.»

Read more: https://medium.com/@globcoin_io/currency-baskets-for-wealth-management-7af7de07a3b4

These are quotes from the study “Overcoming the Notion of a Single Reference Currency: A Currency Basket Approach” written by Helie d’Hautefort and Giuseppe Ballocchi; published by the CFA Institue Research Foundation

I see no difference between this medium article and youtubers with many followers being paid to spread anti crypto propaganda.

In the past, central bankers favored one world governments and one world currencies as a means of eliminating competition and granting themselves monopolies over political and monetary power. This piece written by Helie would appear to represent an evolution of that past ideal whereby there is a "basket" of several centralized currencies, rather than a single currency, to make it less obvious there is a monopoly present and also serve as a method of speculation / currency manipulation.

If someone asked Helie to elaborate on what he means by "heeding the lessons of economic history" I would be interested to hear his answer There are no real historical precedents for any of the things he's proposing, as far as I know. He's only making stuff up to suit whatever agenda he's being paid to push, like the majority of economists, political pundits and financial experts who go out of their way to address obscure topics like this one.

jmlona

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Quote from: wxa7115 on February 23, 2018, 01:07:48 PM

Quote from: jmlona on February 23, 2018, 11:19:07 AM

Quote from: Don Pedro Dinero on February 23, 2018, 08:38:02 AM

I think bitcoin was the result of some people deeply thinking about the economic function of money.

Quote from: EvaGC on February 23, 2018, 08:24:47 AM

«... No currency, in particular no fiat currency, has survived the test of time over the very long term.»

That’s why bitcoin has a cap of 21 million, as a way to prevent to prevent devaluation. The cap is actually going to have to opposite effect (as long as bitcoin keeps becoming more adopted): as time goes by, the value keeps increasing as it is a scarce good.

The short of it is that there's no ideal. Traditional fiat currencies fail because they are inflationary in nature, bitcoin won't work as a traditional currency because it's deflationary in nature.

Gold worked for a long time to sustain the economies of the world and it is limited in nature and we extract less of it as time goes on, bitcoin works under the same concept with the only difference the deflation is known in advance, the problem is the economy is too complicated and the banks and speculators have created a system where speculation is everything, when the system collapses it will have to be simplified and bitcoin then could work with no problems.

Quote from: yinyangwinwang on February 23, 2018, 02:19:08 PM

It doesn't need to function as a traditional currency because traditional currencies all go to zero and eventually are useless. It is my hope that Bitcoin will be used 100 years and even 200 years from now, that will go to show the truth power behind the currency. I mean if the US dollar can be alive longer than 200 years and it has depreciated such a value, only can only hope a more proper system would stay in place longer like Bitcoin.

While I agree with both of you. Gold is limited in that it's not easily used as a currency in itself and banks soon realised it was easier not to have actual reserves of gold to back the currency. This allowed them to use quantitative easing to stimulate economies and sectors and that's why we end up with such inflation.

Bitcoin can survive for 100 years or more but it won't function as a 'traditional' currency would do.

yinyangwinwang

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Quote from: jmlona on February 23, 2018, 11:19:07 AM

Quote from: Don Pedro Dinero on February 23, 2018, 08:38:02 AM

I think bitcoin was the result of some people deeply thinking about the economic function of money.

Quote from: EvaGC on February 23, 2018, 08:24:47 AM

«... No currency, in particular no fiat currency, has survived the test of time over the very long term.»

That’s why bitcoin has a cap of 21 million, as a way to prevent to prevent devaluation. The cap is actually going to have to opposite effect (as long as bitcoin keeps becoming more adopted): as time goes by, the value keeps increasing as it is a scarce good.

The short of it is that there's no ideal. Traditional fiat currencies fail because they are inflationary in nature, bitcoin won't work as a traditional currency because it's deflationary in nature.

It doesn't need to function as a traditional currency because traditional currencies all go to zero and eventually are useless. It is my hope that Bitcoin will be used 100 years and even 200 years from now, that will go to show the truth power behind the currency. I mean if the US dollar can be alive longer than 200 years and it has depreciated such a value, only can only hope a more proper system would stay in place longer like Bitcoin.

Vendetta666

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Quote from: EvaGC on February 23, 2018, 08:24:47 AM

«To successfully manage wealth over the long term, we need to think deeply about the economic function of money, particularly as a store of value but also as a medium of payment and a unit of account. We also need to adopt a more holistic approach to risk, heeding the lessons of economic history: No currency, in particular no fiat currency, has survived the test of time over the very long term.»

Read more: https://medium.com/@globcoin_io/currency-baskets-for-wealth-management-7af7de07a3b4

These are quotes from the study “Overcoming the Notion of a Single Reference Currency: A Currency Basket Approach” written by Helie d’Hautefort and Giuseppe Ballocchi; published by the CFA Institue Research Foundation

It is only right for us to think deeply for the development of economic money because it is also for our own and our country's growth. with our country as a cohort, so we need to help us to think deeply about the economy and that those in the government so we can help us.

wxa7115

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Quote from: jmlona on February 23, 2018, 11:19:07 AM

Quote from: Don Pedro Dinero on February 23, 2018, 08:38:02 AM

I think bitcoin was the result of some people deeply thinking about the economic function of money.

Quote from: EvaGC on February 23, 2018, 08:24:47 AM

«... No currency, in particular no fiat currency, has survived the test of time over the very long term.»

That’s why bitcoin has a cap of 21 million, as a way to prevent to prevent devaluation. The cap is actually going to have to opposite effect (as long as bitcoin keeps becoming more adopted): as time goes by, the value keeps increasing as it is a scarce good.

The short of it is that there's no ideal. Traditional fiat currencies fail because they are inflationary in nature, bitcoin won't work as a traditional currency because it's deflationary in nature.

Gold worked for a long time to sustain the economies of the world and it is limited in nature and we extract less of it as time goes on, bitcoin works under the same concept with the only difference the deflation is known in advance, the problem is the economy is too complicated and the banks and speculators have created a system where speculation is everything, when the system collapses it will have to be simplified and bitcoin then could work with no problems.

jmlona

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Quote from: Don Pedro Dinero on February 23, 2018, 08:38:02 AM

I think bitcoin was the result of some people deeply thinking about the economic function of money.

Quote from: EvaGC on February 23, 2018, 08:24:47 AM

«... No currency, in particular no fiat currency, has survived the test of time over the very long term.»

That’s why bitcoin has a cap of 21 million, as a way to prevent to prevent devaluation. The cap is actually going to have to opposite effect (as long as bitcoin keeps becoming more adopted): as time goes by, the value keeps increasing as it is a scarce good.

The short of it is that there's no ideal. Traditional fiat currencies fail because they are inflationary in nature, bitcoin won't work as a traditional currency because it's deflationary in nature.

Topic: "We need to think deeply about the economic function of money" (Read 264 times)