Currency vs Money
When I first watched this brilliant video series on what makes something a currency and what makes something a money, this was really eye opening. This information was priceless and allowed me to understand the monetary system on a macro level. When I first jumped into cryptocurrencies, I was trying to figure out if it was just 'magic internet money' or something with a lot more substance than that. Having watched this video series I have come to my own conclusion that crypto, including the likes of BTC, ETH and BCH, are sound forms of money.
What Makes Crypto Money?
Ultimately what makes crypto and other assets like gold and silver money is their 'Store of Value' attribute. Essentially, this means that the supply of the asset cannot be heavily increased over a short period of time. The supply and units of the asset in existance have a steady and predictable increase so that proportionally 1 unit will have the same purchasing power of 1 unit long into the future. Gold and silver are mineable just as Bitcoin is. The supply of all of these is slow, steady and somewhat predictable. Of course, this isn't the only characteristic but watch the video and you will see for yourself what else it takes to be a money, not just a currency!
The Best Investment Is an Investment in Your Financial Education
This series from Mike Maloney was mind blowing and really brought home some 'truth bombs'. Please watch this series and you will not regret it. Given that we are all into crypto, for a wonderful variety of reasons, hopeefully this will stregnthen your financial and monetary education! All credit for the video goes to Mike Maloney's Youtube channel. Follow the video link for more information!