The post What gives new crypto its Promissory note value of Money appeared first on Newstrail.com authored by Claude Theriault
What gives new crypto its promissory note value of money status, and why is it all shamanic shape-shifting to DEFI
Money: From Barter to Promissory Note and back again
In today’s complex shape-shifting fourth, turning economy, money is essential for exchanging goods and services. But money has a long history, dating back to the bartering system that our ancestors used for thousands of years. This primitive system was suitable only for simple transactions in which buyer and seller had the exact good or service they wanted at the right time – something economists call the “double coincidence of wants.”
Over time, this system evolved into something more sophisticated. Money began to take on promissory note values – where people could exchange a promise to pay later instead of carrying bulky goods. This allowed for far more complex transactions and facilitated trade between strangers who no longer had to be present at the same time or place. As noted by economist Adam Smith, “Money is not only a medium of exchange but also a standard measure and store of value, enabling buyers and sellers to calculate prices and evaluate assets over time.”
Today, money is even more sophisticated than ever with the introduction of digital currencies such as cryptocurrencies like Bitcoin. These digital currencies are revolutionizing how people spend money, allowing them to make payments quickly and securely without banks or other intermediaries. However, despite these technological advancements, it’s still important to remember that money is a means to an end – it’s not an end. As Nobel Prize-winning economist Milton Friedman said: “The ultimate purpose of money is not to buy things; it’s freedom.”
Money remains integral to our modern lives no matter what form it takes – coins, cash, new banking cryptocurrencies, and the meta mask wallets that hold them. Its promissory note values have enabled us to make complex transactions quickly and conveniently while allowing us to pursue more excellent economic opportunities beyond our local communities. Money may have come a long way since its humble beginnings in bartering systems, but its ultimate purpose remains unchanged: freedom.
If you owe the bank $100, that’s your problem. If you owe the bank $100 million, honey, that’s the bank’s problem.
Understanding the Value of Money and its Intrinsic Worth
Money remains integral to our lives, but what gives money its promissory note values? To answer this question, it’s essential to understand the foundational traits that make up sound money.As it also applies to cryptocurrency in new banking.
Sound money must be durable, portable, divisible, and fungible. Durability is essential for a store of wealth – it must not rot, melt, erode, or corrode. Portability means that money should be easily transportable so that one can easily carry it around in their pocket. Divisibility allows for “making change” – dividing money into denominations necessary for various transactions. Fungibility ensures that all units are equal and mutually interchangeable.
In addition to these traits, sound money ought to have intrinsic value. This means that the material from which the cash is fashioned should be a worthwhile commodity in its own right. Gold has been used as a currency since ancient times due to its durability and intrinsic value; however, more recently, paper currency has become increasingly popular due to its portability and divisibility.
The critical element in determining whether something is suitable as money is how well it delivers value
“When we look at gold or paper currency, we can see how they meet these criteria – gold has intrinsic value while paper currency enables us to make transactions easily – but ultimately, it comes down to trust in the issuer and their ability to maintain stability over time.”
Understanding what gives money its promissory note values comes down to understanding key characteristics such as durability, portability, divisibility, and fungibility, as well as having an appreciation for intrinsic value.
The value of a unit of currency is not the measure of the importance of an object but the measure of one’s trust in other human beings.
With this knowledge, we can see why certain forms of the new Bitcoin and alt-coin currency have established themselves and others have failed to take hold.
