Bitcoin as money: Ammous argues that Bitcoin has the characteristics of good money: scarcity, immutability,
shareability and transferability. He compares Bitcoin to other forms of money throughout history, particularly fiat money, and concludes that Bitcoin is superior.
Criticism of central banki...
The Bitcoin Standard: The decentralized alternative to central banking
In many countries, while people work hard to make money for the nation, government
officials spend most of it. Many African nations and some in the Middle East suffer from high
levels of corruption.
The government has exclusive control of the amount, flow, and use of government money
Many people believe that the government must always manage all of the nation's wealth.
However, with the emergence of Bitcoin, this belief has been proven false. No government
individual or entity is responsible for managing Bitcoin — the world's first successful digital
cash. It is fast becoming a primary means of exchange, and although Bitcoin won't replace
physical money, it will reduce its control.
Because cryptocurrency's value increases when the economy falters, investing in Bitcoin is
insurance against a recession.
“Many people work under exerting and toxic corporations who pay them peanuts in return.
Also, government institutions have made it difficult for individuals to enjoy their money
without external, undue influence. The instability of monetary value has complicated the
process of amassing wealth. For example, a certain amount of money today might lose most
of its value in two or three years. Every individual has the right to wealth; with Bitcoin, this
right has become more achievable. In the foreseeable future, Bitcoin will continue to wax
stronger, and more people will have the chance to purchase sovereign wealth. This
summary gives an insight into the world of digital currencies and the future of Bitcoin.”
“Sound money allows people to think about the long term and to save and invest more for
the future.”
Bitcoin is a groundbreaking invention in the history of money
Bitcoin started a revolution in the global market, representing the best solution our digital age
can provide for our old problems. One of the world’s most significant issues was finding
ways to move economic value across time and space. However, Bitcoin solves this problem.
To understand Bitcoin, we must first understand money. To do that, we must pay attention to
its function and history.
In the early days, the easiest way for many individuals to exchange value was through trade
by barter. But this exchange method is only practical within a small space with a small
production output. In a bigger economy, trade by barter would be more difficult. It is
impractical to exchange many goods, services, and favors with others because their wants
and needs differ.
In the bigger markets, it becomes more challenging to coordinate the demand and supply
cycle purely through barter. Sometimes, we could want to exchange our goods for another
person’s, but another person might not want what we have. These discrepancies become
impossible to manage in larger national and international markets. The need for new
technologies akin to Bitcoin became as apparent as ever.
, As a result, indirect trade was introduced. Through indirect exchange, we find goods that
someone else wants and people who will trade them with us. While we could use them for
exchange, a bigger economy makes looking for goods others might want impossible. It also
becomes challenging to carry out many exchanges, especially when we want different
products in return. However, for an indirect exchange to work seamlessly, we can use
something that can purchase goods without having to exchange them, which is money.
Money is a medium of exchange that eases the process of trading goods.
Money makes it easy for us to sell what we have and buy what we want. Money does not
refer to goods purchased to be consumed or used to produce other goods, but only to be
exchanged for other goods. As societies evolve, we find new ways to transform this medium
of exchange.
Digital money is not a new idea
Of all the existing forms of money, the one most similar to Bitcoin is the ancient system of
“Rai stones” on Yap Island. Rai stones varied in size and were not native to Yap; people
brought them in from other areas. These precious stones were rare and unique in their value
and appearance.
The stone owner could use the stones to pay for goods without physically moving them. All
the owner needed was to announce to the people that the stone’s ownership had changed.
The people would duly recognize the transaction, and the new owner could then use it to
trade. This system prevented theft, as everyone knew the new stone owner.
Seashells are another object that has similarities to Bitcoin in terms of monetary value. They
were used worldwide, especially in North America, Africa, and Asia. History shows that the
most valuable seashells were difficult to find. These scarce seashells would hold value more
than those found easily due to their rarity.
However, as technology advanced, people invented superior forms of money that relegated
these historical forms of payment. People moved toward using metals for money, making
them more acceptable and easier to use. Metals quickly became essential for the exchange
process. It was easy to reproduce and transfer them when and where needed.
Bitcoin has enabled individuals to purchase and grow wealth, which is mainly impossible
with a centralized government.
People could use paper money backed by gold by the 19th century, thanks to the advent of
a banking system and improved communication practices. Sellers may profit from the sale of
gold, while purchasers could buy and invest in the future. This fact allowed for gold-backed
trades of any size, lessening the demand for metal money. The gold standard made it
possible to do things that had never been done before.
Now, the market was based on the single money standard, making the global economy more
stable and unified. Gold also introduced standard trade and wealth accumulation. It also
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