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by vubuntu 3058 days ago
Goods have intrinsic value...currencies don't. They are just trusted (and backed by a public trusted entity, usually government, but need not be) stores to 'hold' transferred 'value' that lubricates an otherwise raw barter exchange economy.

Raw barter economy: I provide service to someone in exchange for food/clothes

Currency lubricated economy: I provide service to someone. They give me 'token(s)' equivalent to value of my service. I use the token(s) to buy what I want from someone else.

The token(s) need to be trustable, not-easily-duplicatable, should be equal to the total sum of values of all services + goods that exist in the society/economy. The token(s) needn't have any intrinsic value themselves other than the properties mentioned (probably more than the listed ones, but I listed basic ones)

1 comments

Bitcoin is not a currency its a store if value. The currentb intrincis value is the curent value of the bitcoin.