Today I would like to revisit the difference between Money & Currency.
This is a topic that has been discussed before, however with ATH's almost daily, I am sure we have no people in our ecosystem that missed the conversation the 1st time around.
So Let's Go!
1st a quick short summary.
Currency is a medium of exchange. In basic terms it is Money in the form of paper or coins normally issued by a Government.
From my view this happened when the US went off of the Gold Standard and the entire world system became FIAT.
It is important to understand that Currency is NOT a store of value. It can be devalued and sometimes can go to ZERO.
MONEY on the other hand is a store of value such as Gold. Gold has been the standard of money for thousands of years.
So what is BTC (in this post BTC will be our poster child for cryptocurrency)??
It is defined and talked about as a cryptocurrency or just crypto. Why is this?
The original goal of BTC was to be a means of transacting without any government interaction. The protocol printed it not governments.
This was usurped by governments (most the USA) when they made it property and you need to report and gains/losses just like a stock.
This started the change of people using it to buy coffee, pizza (remember that one), or any service with it. People and now larger traditional financial institutions have bought up BTC and are on the HODL train for it.
So if BTC is not being used for trade of goods & services and just being HODL as a store of value. What is it now?
BTC = MONEY
BTC has moved from a currency to a form of money.
What does this mean?
IMHO I think this means we need to find a new crypto to be used as a currency (I like LTC myself but this is changing).
Imagine a world where we have a cryptocurrency (or 2 or 3) that we use as currency (trade of goods/services) and they are on the BTC standard. Where they are backed by BTC, the same way USD used to be backed by GOLD.
I think this is were we are heading. So one last question.
HOW MUCH MONEY DO YOU HAVE?