Money is an Experiment That's Been Evolving for Centuries

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coingallant

Published on Jul 04, 2019
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Money is an experiment that's been evolving for centuries.

So there was a recent tweet that went up by one of the Winklevoss twins and he was basically saying that money is an experiment that has been going on for thousands of years and that, you know, we're continually trying to figure out how we can make currency work in society. Here is the direct link to that tweet… https://twitter.com/winklevoss/status/1143588089727803394.
Right now obviously we have Fiat currency and then cryptocurrency is the latest evolvement if you will, of currency. And so what he's basically saying is people shouldn't mistake, you know, what is real from what is familiar. Okay. He says that in his tweet where he basically is talking about how people don't think crypto is real money. And what it comes down to is that people are actually used to Fiat currency. And so they believe that Fiat currency is real money. Okay. So yes, Fiat currency is the main, uh, money, so to speak, that is being used by societies throughout the world.

And now that we have cryptocurrency, which is the latest evolvement, it's the latest advancement in money. You know, what is money really? But that's a whole ‘nother video. But he was basically saying that, you know, people, they need to understand that there is a difference between the real and the familiar. And that at one point cash was, it was a completely new fangled idea. And he says that in his tweet he says that, uh, cash was just a completely new thing because there was gold and people understood gold. You know, you could hold these gold bars in your hand, but to have paper in your hand to carry around was just kind of odd. Right? People didn't really get it. They didn't understand it. They're like, I don't know why we would care around this paper with us. Yeah, it's easier. But you know, it's not gold.

Well now people are used to cash and there's no reason to question it at all because we've been raised with it. We've been pretty much brainwashed with it. And we think, you know, hey, this is currency. This is, this is what currency is. It's cash, it's credit cards and what have you. And so now that we've introduced cryptocurrency into the mix, it's like, wait a minute, hold on. What is this? I don't know think this is real money. You know? I can't hold this in my hand.
This is a digital asset, you know? That's weird. I don't, I don't get it. This is odd and, and I, I can't touch it. I can't feel it. It's like, well, you can't do that anyways with your Fiat currency right now that's in your bank account. You know, you can't touch it or feel that you can move money from one account to another using your app on your phone and you're not touching that physical money.

Right. You're not touching that at all, but yet it's moving from one account to another digitally. Well, just think along those similar lines with cryptocurrency, except crypto is decentralized and Fiat currency is centralized, which she can talk more about that in another video. But basically going back to the Winklevoss tweet that was recently put up, you know, he was basically stating that we cannot confuse what is real with the familiar, you know, what really is real money anyways.

Money is to me, if you asked me what money is, I'll say it's a store of value. It's something that we can use to transact goods and services with. So if I want a good or a service from someone else, or if I just want to send value to someone else, you know, it's a store of value. It's transaction worthy. What it is, is it's the power of belief.

So if people believe that money has value then it does. The only reason that money, the only reason that cash has value is because, look, even me, even I have thoughts still that fiat currency is real money when in fact money is money, you know, whatever we believe it to be, whatever we believe money to be, that's what it is. Okay? We give value to the dollar. We give it that worth because we believe that's what it's worth.

Cryptocurrency, we believe that it's worth what it's worth and actually is because there's a limited number, unlike cash where you can just print it off like crazy, right? You can just print it off whenever you want to or the government can. Whereas cryptocurrency, it's a limited amount. It's a limited number. And so there's scarcity involved there. And so there's not going to be, you know, these differing levels of inflation and what not.

There's going to be deflation. It's deflationary in nature. There's only so many that can be mined or minted or created. And once that's used, that's used, you know, and you can't make any more as it’s built into the protocol. It's actually built into the inner workings of the blockchain. You know, you cannot make more. And so that is what makes it special. Just like a diamond, you know, you have diamonds and there's only so many diamonds in the world that you can have. You know, you can't just make more diamonds and if you do, they're going to be fake. Right? You don't want the fake thing. You want the real thing. Well, if you want the real thing, then there's limited number. And there's extreme value in that. Just like with bitcoin and cryptocurrencies, there's extreme value in that because there's only so many. With Bitcoin, there's only 21 million tokens, 21 million coins that can ever be created… ever.

No one has the power to make any more. So that makes it extremely valuable guys. And the ability to be able to transfer it from one side of the world to another in a couple of seconds is just phenomenal. You can't do that with gold bars. Okay. You can't, you just can't. So what is real money guys? Really, you know, it's what we believe it to be. We give it value. Okay. And if we're able to use it to transact, that's amazing. If we're able to store it and, and huddle it, hold onto it for dear life, then we can do that as well. We have the power, we own the keys with cryptocurrency and with Fiat currency. That's government backed currency. And so we just use it and we give it to the banks to hold onto it. And the banks, it's almost like a loan that we give to the banks.

Like here, you can use this money. Technically we think it's our money, but we give it to the banks and they're like, okay, well now it's technically ours. You know, we're in control of it and you have to play by our rules. But with cryptocurrency, you are your own bank. You know, you own the keys to your wallet, so you are your own bank. And that's absolutely phenomenal.

So I've gone on long enough, guys, thank you for watching this video. Subscribe to Coin Gallant for more value like this. I'll see you in the next one. Peace.

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money fiat crypto blockchain

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