Global Feed Post Login
Replying to Avatar j

“The simple reality, demonstrated throughout history, is that any person who finds a way to create the monetary medium will try to do it. The temptation to engage in this is too strong, but the creation of the monetary medium is not an activity that is productive to society, as any supply of money is sufficient for any economy of any size. The more that a monetary medium restrains this drive for its creation, the better it is as a medium of exchange and stable store of value. Unlike all other goods, money's functions as a medium of exchange, store of value, and unit of account are completely orthogonal to its quantity. What matters in money is its purchasing power, not its quantity, and as such, any quantity of money is enough to fulfil the monetary functions, as long as it is divisible and groupable enough to satisfy holders' transaction and storage needs. Any quantity of economic transactions could be supported by a money supply of any size as long as the units are divisible enough.”

— The Bitcoin Standard: The Decentralized Alternative to Central Banking by Saifedean Ammous nostr:npub1gdu7w6l6w65qhrdeaf6eyywepwe7v7ezqtugsrxy7hl7ypjsvxksd76nak

https://a.co/6nobgsA

Avatar
a source familiar with the matter 2y ago

Tell me you don't understand commodity money

Reply to this note

Please Login to reply.

Discussion

No replies yet.