Healthy money performs three essential roles.
Firstly, as a medium of exchange, it facilitates transactions by serving as an intermediary, enabling the buying and selling of goods and services without resorting to barter. This function streamlines trade.
Secondly, money provides a standard unit of value; it sets a common measure for pricing goods, services, assets, and liabilities, which assists in maintaining accounts and comparing values with ease.
Thirdly, money functions as a store of value, allowing individuals to save and defer consumption while preserving purchasing power over time—something that perishable items cannot achieve.
These three functions are crucial in the economy: they simplify transactions, establish a basis for comparing value, and support wealth accumulation. However, when money loses its ability to act as a reliable store of value, people start looking for alternatives. Historical evidence shows that when governments issue fiat currencies—money without the safeguards against manipulation—its capacity to preserve value declines. In contrast, 120 years ago under the gold standard, people saved their wealth in gold, a form of hard money that appreciated over time and could not be arbitrarily produced.
Today, many individuals feel forced to invest in riskier assets like ETFs and real estate to safeguard their savings so that they don’t have to hold the dysfunctional fiat money that is permanently debased by the government.
If we only had a digital equivalent of gold—a global, permission-less, energy-backed currency that governments cannot manipulate—that could serve as a stable store of value, underscoring the increasing demand for hard money in the financial system again. 🧡
Study #bitcoin on #nostr here:
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https://video.nostr.build/9588f9ae880576932aad578a50e9b4c9e424c83616169e65e0abdccd879bba26.mp4
