What is Money?

Just a quick though about Money. Money is the "a medium of exchange" as stated by Wikipedia. But how well do we know this "medium of exchange"?

We all know money, don't we? Of course, we do! We use it every day. We go to work to earn it. We bring our paychecks home and pay our bills. We spend it on entertainment. We borrow it so we can buy things, before we have the money, and we pay it back later. Sometimes we loan money to friends or neighbors and we get upset when it's not paid back. Sometimes we donate money to the needy or to our favorite charity. Everyone knows there are many businesses that deal with money as their products. There are banks and investment companies that we conduct our personal and occupation businesses almost every day. We use bank cards and debit cards for almost all our purchases. We see this as money, not cash, but money just the same.

And now there is crypto currency. It is the newest thing in money. A few years ago, credit card came into being and it was the new form of money. Later debit cards became the norm. Cash is not used as often as before. Digital currency is everywhere. But crypto currency puts a new twist on the money concept. Yes it is a digital form much like debit cards. What is unique is that crypto currency is not controlled by governments and is openly controlled by the people.

Ok, this is something new for most people. Lets take a quick overview. Originally, the barter system was all we had. Then came money, the medium for trade. It came in many forms before the use of gold and silver. As civilization grew, paper money came into use and was backed by gold. This form was very stable because it was backed by a solid form of currency. That is that each paper note was worth a give amount of gold and or silver. Today, paper money and digital money, in the form of credit cards and debit cards, are not backed by gold and silver and thus are very unstable. Known as fiat currency, governments control and manipulate the value of fiat money. This manipulation, or abuse, has caused the fiat form of paper and digital money to deteriorate in value and stability. Countries around the world have and will continue to have economic collapses due the nature of governmental abuse. No country is immune to this where fiat currency is used. Now a new change is coming.

Just like before, crypto currency is going to take over. Unlike original money, before fiat currency, gold and silver do not back crypto currency. Unlike fiat money, governments cannot control or manipulate crypto currency. Good solid crypto has a limit to the amount created and is backed by solid business projects. A new concept. There is much to learn about this type of currency of which I am not going to cover here and now. However, I would like to point out that crypto currency is here to stay and will most likely take over when the fiat system collapses. I dare say, the collapse of fiat money and its world wide economy is going to collapse sooner that later.

For now, I recommend everybody learn what you can about money, fiat and crypto currency. I will end with this one question. Do we really know money? If you do, you are ahead of the game. If you do not, don't delay learning. Your financial stability depends on it.

Take care my friends.
McDowell