Any Equity Can be Used as Currency

My last post mentioned a lecture by a gold-vendor that claimed The Federal Reserve was a ponzi scheme

There isn't a security behind a federal reserve note to assure its value. People value the note largely because we are forced to do our taxes in dollars. I just paid a huge property tax bill in dollars. I had to get dollars to pay that tax.

The lecture didn't convince me to buy gold, but it did encourage me to think about the nature of money.

I finally decided to research money. I asked questions such as: What do rich people use for money?

The ultra-rich people in the United States own companies. They use the shares in their company for money. In some cases, they use entire companies as currency. We can see this when we study the merger and acquisition chains of companies.

Yesterday I researched the merger and acquisition chain related to the Avis Budget Group. "Avis Budget" is a huge company that rents cars. They own about a half million vehicles.

Both Avis and Budget started as small firms renting cars at airports. When the companies grew large they were taken over by huge private equity firms.

Merger and acquisition chains are extremely interesting in that one sees huge companies being used in the same way that we are using tokens on SteemIt.

The mergers that we see aren't simply funded by the capital value in companies. One sees that mergers and acquisitions tend to create huge debts. The powerful entities that trade companies use the huge debt loads racked up by companies as currency as well.

The rich use an extremely complicated mix of securities as currency. Some of the securities are backed by income streams. Often the securities are derivatives.

Conversations on SteemIt tend to focus exclusively on the use of cyber currency and blockchain technology.

However, I believe the really exciting potential of this market comes when people move beyond cryptocurrency and start taking about the use of crypto in developing real world securities.

As I studied merger and acquisition chains, I realized that any security can be used as money. The ultra-rich use companies, bonds and stock as money. The best way to create an even playing field for people at large is for the cyber word to develop tokens backed by actual securities.

I couldn't find a good picture for the post. Here are some pies served at Thanksgiving. Pies would make an interesting currency. But they don't seem to last very long. Village Inn and Marie Calendar appare to have done okay using pies as currency.