What Is Currency?
To some extent, we all take the concept of currency for granted. Oh, currency? You know, money; the USD, the Euro, the Pound, the RMB. Yes, these are all currencies, but it's interesting that our minds immediately jump to these specific examples, all of which represent various government's desire to control, regulate, and stabilize their economies while vying for hegemony abroad. It reveals just how shortsighted our conception of currency generally is. (Of course, I expect that anyone reading this on Steemit has at least a slightly more broad definition of currency. :)
If you google 'currency definition', you'll find an interesting pair of definitions which are, well... almost too perfect for making the point I'm trying to make!
The first definition states that currency is: a system of money in general use in a particular country.
Ok. This is exactly our shortsighted definition which tries to associate the very concept of currency with the state. In today's reality this definition would better fit the term 'fiat currency'.
Great. So what about the second definition?
The second definition states that currency is: the fact or quality of being generally accepted or in use.
Wow. Just like that we've not only divorced our concept of currency from the domain of the state, we've also divorced it from necessarily being tangible or even quantifiable. Using this definition we can talk about things like 'social currency', 'political currency', perhaps Karma, and of course 'cryptocurrency'.
Even more broadly, one could define currency as: anything which holds value and can be exchanged. Under this definition just about the only thing that wouldn't be considered currency would be something like 'an infectious smile'. An infectious smile has value and can certainly be used a resource to gain social currency, but you'll never be able to 'trade away' the actual quality of having an infectious smile for anything. (Unless you happen to meet the devil at a crossroads at midnight, I suppose.)
The Power And Importance Of Currency
Anyway, different fiat currencies are tied to different Nations and Institutions, follow rules created by the Nations that create them, and only have value because they have been created by a Nation which deeply believes in the integrity of the currency. The reason the USD is the gold standard for global trade is because global communities and institutions believe in the relative stability and integrity of the USD. US citizens, corporations, and government obviously benefit from and encourage this situation because it helps provide easy access to global markets and provides many other benefits including international hegemony and sovereignty.
Steem is absolutely amazing because we are helping create a decentralized digital economy which is more or less decoupled from any States or political institutions.
Even more to the point, Steemit is absolutely fucking GENIUS because, guess what?!?!:
By hard-wiring a community-based social media platform directly to the creation and distribution of a cryptocurrency such as Steem, you are creating community, integrity, aaand... that's right: Sovereignty. Steem is literally on it's way to becoming the world's first digital Nation. All it has to do is not implode on itself...
In Steem We Trust, Ladies and Gentlemen.
Here is my prediction: eventually, everyone will start to see just how revolutionary Steem is, as it quietly (or not so quietly) hangs out over here distributing itself to a talented, open, community-oriented user base which is increasing the value, the stability, and the integrity of it's currency of choice simply by existing. Minds will be blown. They will then quickly recover and proceed to copy the idea of Steem as frantically as possible. Soon the interwebs will begin to look like wide plurality of online communities, all minting and distributing their own currencies which are essentially backed by their user-base. The strong communities will thrive and their currencies will have value. Many will falter and fade. It'll be a wild ride to say the least. :)
Next Post: How can we use cryptocurrency as a vehicle and a practical laboratory to transcend our Nation-State based conpections of what currency even is.
Oh right... Almost forgot to include a sweet GIF to draw in readers. Here's your moneyshot:
