In history of Money, author Glyn Davies lists six functions of money:
- Unit of Account
- Common measure of value
- Medium of exchange
- Means of payment
- Standard for deferred payments
- Store of Value
- Paper, coins, gold, silver, salt, cattle, deerskins, vodka, ivory, wampum beads and whale’s teeth. There were all used as currency in history.
- Each type of money was valuable for a different reason. Roman soldiers, were paid partially in salt, a precious commodity that allowed soldiers to flavor their bland food. The word ‘salary’ is taken from the Latin word sal, which means salt.
- Good and silver came into play later. They were a good store of value. But they had drawbacks. Transportation, and scarcity were major factors along with security.
Bitcoin’s Dominion:
- Bitcoin is a cryptocurrency, a form of electronic money. It is a decentralized digital currency without is independent of banks and can be sent from user to user on the peer-to-peer bitcoin blockchain network without the need for intermediaries.
In short it is a better currency of them all because….
- It has no central authority.
- Globally it’s acceptance increasing.
- There can only be a 21 million supply of Bitcoins.
- It’s network gets stronger every 10 minutes making it resistant to outside hacks.
- And unlike banks, you cannot reverse a Bitcoin transaction.
Bitcoin is a deflationary asset. And the US dollar or any other government currency inflates every year. The world is going digital and decentralized. Be part of the crypto revolution today !
