This is a deceptively-simple question with many complex answers, which must be asked by everyone at some point while they fall down the Bitcoin rabbit hole. nostr:npub1h8nk2346qezka5cpm8jjh3yl5j88pf4ly2ptu7s6uu55wcfqy0wq36rpev, nostr:npub1hghnjjpnvkz8t6gkszuf37d7puwc2qtxc65rnklqsngzv6kkug9qhhfyz2, and nostr:npub1klkk3vrzme455yh9rl2jshq7rc8dpegj3ndf82c3ks2sk40dxt7qulx3vt explore this question, and offer their answers for those taking the orange pill.

Below is Daniel Prince’s answer, as written in “𝟮𝟭 𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀”:

𝗗𝗮𝗻𝗶𝗲𝗹 𝗣𝗿𝗶𝗻𝗰𝗲’𝘀 𝗮𝗻𝘀𝘄𝗲𝗿:

In Austrian economics, money is viewed as a commodity that has evolved naturally in the market to facilitate exchange. Austrian economists, including figures like Ludwig von Mises and Friedrich Hayek, emphasize the decentralized and spontaneous nature of the emergence of money. In layman's terms, money is an agreed-upon medium of exchange used between two parties to execute a mutually beneficial transaction.

Over time, a commodity with specific desirable characteristics, such as durability, divisibility, portability, and recognizability, comes to be widely accepted in transactions. Without the emergence of a medium of exchange, humans would have been confined to using a barter system and would have not evolved to form complex societies and civilizations. The problem with a barter system is that it doesn't solve the economic phenomenon of ‘The Coincidence of Wants’, whereby one party does not value or desire another party's goods or services. ‘Money’ solves this problem when both parties agree on a medium of exchange to use to transact peacefully and prosperously with each other.

Furthermore, Austrian economists argue against the notion of a central authority (like a government or central bank) having a monopoly on the issuance and control of money. They contend that a competitive and decentralized market for money is more likely to produce a stable and efficient monetary system and a more productive and peaceful society.

Daniel Prince is the host of the Once Bitten Podcast, with a mission to help educate as many people about Bitcoin as possible so that they can gain financial freedom, and the InspirEd Podcast, showcasing world thought leaders in the 'alternative' education space. He is also the author of "𝘊𝘩𝘰𝘰𝘴𝘦 𝘓𝘪𝘧𝘦: 𝘛𝘩𝘦 𝘛𝘰𝘰𝘭𝘴, 𝘛𝘳𝘪𝘤𝘬𝘴, 𝘢𝘯𝘥 𝘏𝘢𝘤𝘬𝘴 𝘰𝘧 𝘓𝘰𝘯𝘨-𝘛𝘦𝘳𝘮 𝘍𝘢𝘮𝘪𝘭𝘺 𝘛𝘳𝘢𝘷𝘦𝘭𝘭𝘦𝘳𝘴, 𝘞𝘰𝘳𝘭𝘥𝘴𝘤𝘩𝘰𝘰𝘭𝘦𝘳𝘴, 𝘢𝘯𝘥 𝘋𝘪𝘨𝘪𝘵𝘢𝘭 𝘕𝘰𝘮𝘢𝘥𝘴". He hosted the Homeschool Global Summits 2019 and 2020.

Preorder your copy of “𝟮𝟭 𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀”, and 𝘀𝗮𝘃𝗲 𝘂𝗽 𝘁𝗼 𝟴𝟬%, by contributing to our nostr:npub1kmwdmhuxvafg05dyap3qmy42jpwztrv9p0uvey3a8803ahlwtmnsnhxqk9 initiative:

https://geyser.fund/project/spiritofsatoshi