There is a lot of debate about the issues within the crypto money, the mechanisms of reconciliation and technical applications. But above all these question marks, there is a gigantic question mark, perhaps wrapped around the crypto bills: "Are crypto bills real money?"
There are a lot of arguments that both the participant and the non-participant are concerned that the modern money of the crypto money is the real shape. Participants 'and non-participants' views on the subject will provide an answer to the question "Do I believe crypto money is real money?"
The debate, which is focused on this question, extends from the general public to institutional investors, giant banks and managers of hedge funds.
Clarify the First Question
It is necessary to define what "money" is before deciding whether the crypto money is real money or not.
What is Money?
Money is a generally accepted item or verifiable record that can be used to pay for goods, services and to pay off debt in a particular country or socio-economic context.
It is necessary to accept the invention of the paran which greatly contributed to the development of human civilization. Thanks to Paran's invention, the clearing system was left behind and there was an inter-border trading system that progressed rapidly. This contribution to the development of human civilization is not recognized by many people.
It is necessary to admit that many people do not know the value of money. The origin, intentional and characteristic features of the money are unknown. In this period when money is not known, people spend money they are familiar with in their daily lives. But they do not know that there are many types of digital money that are used in the form of global money. We can call it crypto money.
People do not know what the money in their pockets is, nor do they know what crypt money is. So the most important feature of crypto money is not recognized: decentralization.
Thanks to being centroid, crypto money gives more security as well as giving more control over the digital money that the individual has. Because the cryptographer does not have the World Banking System, which is able to enter into the business, the stockbroker, the clearinghouse, the geopolitical requirements imposed by the governments of each country, and the constraints and power of everything.
The money has a personal meaning for all of us. It is a fruitful way to have some things or to experience the things we want money for.
Others use money to avoid something they do not like, or just to save time. After all, time is cash.
Nevertheless, people can not afford money, security, security, love, friendship, love; special treatments or privileges in private or public spaces, inheritances, friends and relatives.
The psycho social impact of money on both macro-level groups of people as well as individuals at the personal level is a very broad and impressive subject.
But we have to stay focused on our own position and talk about whether the crypto money is real money.
Many people thought I was made up of paper pieces that were either beautifully distorted or cool designs that allowed me to buy something. The first money I spent was in the United States. Later, when I visited another country, I noticed that like many stamps, many different countries use their own money and paper money in local trade.
This meant that, with a few exceptions - East Timor, Ecuador and Micronesia, which still accepted the US dollar, I could not continue to use my own money in other countries. So I had to convert my useless money with local, disposable money.
Of course, this conversion is not free. You have to pay a certain "conversion fee" and it is worthless than the money that local workers in the country you are in. Simply, if you are a citizen of that foreign country and you are working in a job, then you do not have to pay the conversion fee and convert it.
But things can become even more expensive. If you want to turn foreign currency, which you did not spend before returning to your country or after returning, to your own country's money, the money you already have is getting better. But what else can you do while abroad temporarily?
When you say so, every car is taking its share in one way.
Now more and more people are leaving coins or paper money. People are paying for products at stores, online shopping, restaurants, etc. by bank or credit card. But they still know that when they pay, they actually spend money on their bank accounts or borrow money from a credit card company. In addition, people are spending money on their accounts or curbing the money they keep in their own country.
The use of electronic payment systems has made it much easier to purchase goods and services in foreign countries. He lifted the need to convert money. But do not forget something. You are paying extra for your bank or credit card as you use it in a foreign country. Your bank or credit card company will charge you a "foreign currency rate" or "international rate".
Money Criteria
Barley grains, spices, jewelery, farm animals, ancient Mesopotamian clay tablets, pre-colonial island peoples' seashells, precious metal money from the Roman Empire or today's paper money...
All forms of money have to comply with certain criteria.
The first five criteria of money are objective and almost universally accepted. The last two criteria are quite subjective and debate among traditional and progressive thinkers about economics.It is quite easy to understand the five criteria that are mentioned. In fact, the criteria are almost self-explanatory.
Shopping Tool
The number one use of money is in the form of a shopping mall. The money brought a solution to the problem of comparing two products that are not similar. In the clearing system, traders had to contemplate how many peas would be needed for a goat or cow, how many loaves of bread would be needed for a bottle of wine, or how many kilograms of grain would be needed for a sailor's anvil.
He also solved another problem in the money swap system: "matching of the demands"Before the money, people had to deal with finding people to ask for what they had. This forced many dealers to work hard. Whether you want what the other person possesses or you need that thing, the other wants or wants the thing you want is not something that can be experienced very often and it is not efficient.
If you can not find someone who wants what you have, you are lucky. In helplessness you have to resort to commodity trading, which is less profitable to get what you ultimately need.
Portability
Money must be portable. Together with the money's invention, people could use it for shopping, bringing the light, rather portable, money instead of bringing the animal to market. It is not really difficult to understand this criterion. Can you imagine carrying a cow or bucket of wheat on your way to Market? More precisely, can you imagine without laughing?
Account Unit
The "unit of account" means that a unit of measure within the environment in which the money functions is the same measure as another unit of the same measure. A Turkish Lira is the same value as another Turkish Lira.
This standardization of units is absolutely vital for a fairly efficient and efficient trade in terms of calculation.That's why the US Secret Service is spending so much time and manpower to fight fake organizations around the world. US Secret Service estimated that in March 2015, $ 0.25 billion of $ 3.4 billion to $ 1.36 trillion worldwide was fake.
Fake money is not new. Counterfeiting lasted at least 1700's to the United Kingdom and was considered treacherous at that time. A counterfeit named Catherine Murphy was executed in 1798 for this crime. Catherine Murphy was executed hanging and believe it or not, it was a lucky death in his name. Because a few years before his death, the punishment of burning in the stake with the 1790 Betrayal Act was abolished. The fake British money at the Alpine Lake, near Austria, shows that the Nazis repressed the fraud of British money during World War II.
Edward Mueller, who lived in New York in the late 1930s, spent all of the city's fake money for over a decade. Then he was caught by the Secret Service. The film was also made: Mister 880.In 2015, Itzhak Loz and Ronen Fakdi, who made more than $ 86 million in counterfeit money by making "almost perfect $ 100 banknotes", were also captured by the US Secret Service.
The fight against counterfeiting is very serious, as the currency unit of account is so important for fair trade and pose such a great threat to the financial system.
Robustness
All kinds of money have to be able to fold the ordinary shopping. From one person to another, change hands several times, in bags, in pockets, in treasure chests, and so on. If the money used can not withstand them, it will not be used. One of the attracting sides of the coinage was that they were pretty solid.
But on the other hand, helpless things are done in desperate times. Sometimes the stiffness of money was criticized.
After World War II, the government wanted to increase the money supply so much that after a while the paper used to print money was consumed. To print money, non-flammable, toilet paper papers and scrap paper were used. Nowadays, paper money is made from paper and cloth to make them more durable.
interchangeability
A substance in the same structure must be completely replaceable with another substance similar to itself. In other words, in a place where Turkish Lira is used, one ₺ should be replaced with another ₺ without any profit or loss.
Interchangeability with account unit can be confusing, but it's actually different. While the unit of account is related to the unit measure and the value equality, the interchangeability is related to the fact that one thing can be substituted for another.
The fact of the exchangeability criterion is that a particular currency should be included in its own functional environment. If a currency is outside its functional milieu - a country that is not accepted for trade - that currency is not changeable.
Even if the account unit criterion is provided. The only way to make that currency changeable is to turn it into a third currency that is accepted by all parties. Thus, the third currency becomes the account unit and the other two currencies become semi-exchangeable.
The Medici family of Italy in the Renaissance period earned such wealth from money exchange. They found a deficit in the interest-based economy.
What is "interest"?
Interest-pricing is a phenomenon of interest lending, as we all know, of a borrowing. This action was considered a great sin by the Catholic Church. In fact, Dante, in Inferno Da seventh layer of Hell is divided into interest.The only people allowed to pay interest on the debt were the Jews.
And the debts they give to Christians only. Why?Because they used an "escape" in the fifth of the ten command books. Part 23: 20 means that "a foreigner can pay interest but not pay interest to a sibling" means that Jews can pay interest on non-Jews, but not on another Jew (sister).
Later on, the Medici family came from the bandits and formed what we now know as FOREX.
What was known as "interest" was pushed into the "commission" and "reserve" envelopes. The Medici family has thus become a legitimate business and has gained incredible wealth and power. Many Medici nobles and popes. Some historians believe that the Medici family often finances the Renaissance.
Basic Value
Finansta means that a "core value" is the value of a company, its emotions, its currency, or its product, determined by actual analysis, without regard to market value.
This criterion is among the subjective ones and there are various finance formulas, economic theories on this criterion and they are never accepted universally. These ideas can be understood in many different ways.Gold and silver investors do not accept anything except gold and silver as money. These people think that all currencies that exist are actually things that hold the place of real value - gold and silver.They also cite article 1 of Chapter 10 of the Constitution: "No state will do anything gold and silver for the payment of debts."
Even Louisiana, Texas and Utah accepted the laws for using gold and silver as money, many states are in the process of going to similar arrangements.Some argue that the argument is not made in the Constitution of the definition of money. They also say that what is mentioned in article 1, section 10, is that the original states must be detained from establishing a currency as a legal means of payment. In addition, the 1792 Money Laundering Act legislated the printing of copper, gold and silver coins.
So Congress also legally recognizes money made from gold and silver from another material.After the revolution, US money was either printed in gold or silver, or supported by gold or silver, from America to the day.It was assured that the currency of the Americans was supported by gold or silver in each bank. Over the years, however, the amount of gold behind each dollar has declined and the situation with the Bretton Woods Agreement of 1944 deteriorated. In this deal, the dollar was supported by only one piece of gold compared to the original US dollar, and the rest of the world's currencies were fixed at the dollar. A new monetary system has been established with this agreement.In 1971, while the dollar was falling, the value of gold was rising, and President Nixon wanted to exchange the US dollars for which they had possessions, President Nixon made the gold compliant from the standard.
Suddenly every other country did the same.The resulting new currency was "nominal". That is, the currency supported by the authority, not the gold, with the seal of approval. Of course, after this situation, many people resisted the nominal money, and those who were the first to adopt the crypt money were probably those people.Now what we are going to say is a painful fact: no titular money survived in world history.
There was the beginning, the middle and the end of each reputable money. In other words, no nominal currency created by man could enjoy the immortality. It was a certain adoption, popularity, decline, and eventually death.Now let's go back to basic value.If you believe that a currency should be supported by something valuable, then you probably do not believe that any currency is real money.
If you believe that value is perceptual, then every and every currency is a real paradise. Especially if you are supporting an army with military power.Pragmatists use market value and popularity to measure the basic value of a currency.
Value Storage Tool
This is the last criterion of money and this is a subjective issue.
The value storage means that a value of money can be preserved for a long time. There is no doubt that gold is at the top of this list. Since antiquity, gold has retained its value as a form of money. No titular money could access this record.Compare this record to the time when the US Dollar is a value storage medium. The buying power of the US dollar has fallen more than 96% since the Federal Reserve was debated on December 23, 1913, which was discussed at a secret meeting in Jeckyll Island and later signed by President Woodrow Wilson.
Now you can ask "what is the intention for a long time". That is six years is a long time for a hummingbird with 3-5 years of life. This question raises another question. "Who decides what a long time it is?" Is gold as a means of storing value? So long for 5,000 years?
Or is it just a few decades like Germany's value storage tool period? The period ending with the Second World War and ending with a hand truck full of money to buy just a loaf of bread or a bottle of milk after the post-war Germans.The thing is: what does it mean to measure a value storage medium while there are countless non-parametric factors that can affect any monetary system?
There is no arguable, reliable history as a means of preserving anything other than gold and silver. A lot of people are very satisfied if their accumulated savings keep their value for at least three generations in the future, or even increase.
Speaking Value
Before we dive deeply about whether crypto money is real money, we have to talk about something that many people believe to be among the money criteria: scarcity.
The less baseline reduction is, the less valuable a resource or asset is. Things such as precious metals are not naturally currencies that can be exposed to inflation.
Most crypto money can not be exposed to inflation. Because there is a certain supply in the algorithm of these crypto money, and the time intervals at which the version to the market will increase are certain.
Is the crypto money "real money"?
Now we will compare the crypt money and the nominal money in the context of the criteria of money.
Shopping Tool
Crypto money is the same as reputation money as a shopping mall. You can use both to buy the same things. As Silk Road closes and other online deep-web shops show us, it's even easier to get things done with crypto money.
Portability
Everywhere in the world, unless the electricity is cut from the ground, the mobility award goes to the crypto money. Even a massive EMP with a global presence in a modernized cold war shelter may not affect you.
By scanning a QR code, tapping a smartphone application, clicking on a web wallet, crypto money can be sent and received quickly and easily. You need a car to make the same transaction with the same money. You pay transaction fees when you do crypto money transactions, but yes, these charges are in the shadow, along with transaction fees for banks or electronic transfers.
You do not have to deal with size or weight while cryptoing money. Paper money does not have this rule. It is quite fragile and dangerous to carry paper money from one place to another. You are a violation of the law if you are doing unlawful, illegal acts.
Account Unit
The account unit prize goes to the crypto. A unit of crypto paranoid has the same value every other unit of the same crypto paranoid.
Counterfeit can not
Another name given to counterfeiting by counterfeiters in the digital world is "double spent". By using the same money twice, it means making both transactions fake. One of the reasons for the emergence of crypto money was to oppose this "double wasted" problem. This is achieved through the use of Blockchain technology and various reconciliation mechanisms for cryptographic algorithms.These features put the crypt money one step ahead of the nominal value of the currency unit.
Robustness
Crypto money is online and not a physical object. So it's impossible to physically break down. In the robustness category, we add another point to the winning crypto.
Robustness does not mean loss
Many newcomers to the crypto money industry lose their "keys", ie, alphanumeric passports that allow them to access their crypto money.Fortunately, many modern crypto paranoids have backup and recovery mechanisms. But just like a physical wallet, security in these wallets is entirely the responsibility of the wallet owner.
Crypto Money can not be withdrawn
If someone sends the crypt money to the wrong person or address - the wallet - and wants to get it back, he can not. In other words, you can not press the "Send" key once, or "Undo".
On the other hand, business owners who accept crypto money do not have to pay fees for credit card services or deal with suspicious submissions.
interchangeability
Crypto money has no changeability problem. Unlike coin money, the nature of the crypto money is not geopolitical. So the function periphery of crypto money is everywhere.That does not mean there are no places that do not accept crypt money.
There is. But just put it side by side with the number of countries that accept the nominal value of their country and still accept the crypt money. I think the nominal value of crypto money is in this category.
Basic Value
As already mentioned, if you believe that a currency should be supported by a value-whatever it is-you will not believe that any currency is real money.
But if you believe that core value is an individual interpretation, there is a possibility that every currency is real money.If you are only concerned with daily, real-life transactions, or if you only care about market value then the most appropriate and popular currency will measure your core value.
Value Storage Tool
If you are a historian or plan to live forever, only things like gold can really be a means of preserving value. However, you can choose a temporary time slot for an ordinary mortgage-free currency to be valid, and decide whether this currency will survive longer than your usage.