Bitcoin has a lot of characteristics of money that have been around for a long time and that help it grow quickly.
That’s what Jean Shepherd said that In God We Trust: All Other Pay Cash. Those well Bitcoiners claim that the cryptocurrency is a form of payment for adversaries: Tweeted about by Vijay Boyapati and Nic Carter. According to Mark Goodwin’s article from January 2022, if Bitcoin (BTC) was not for rivals, it will never be for friends.
Each answer implies that bitcoin is oblivious to your views, including those of those ready to trade with you. Anyone can use it. But it’s true for all money: With fiat, I can buy food from strangers or non-believers. Another benefit of bitcoin is that it allows parties to trade peacefully without knowing who the other is. We don’t do something before ordering a cup of coffee to ensure the barista is righteous in their beliefs.
Most likely, this is regarding censored transactions, where a third party interferes with the transaction and prevents payment. Any of these can be a politician or the law. That’s good for such money table. Which doesn’t make the traders bad.
According to Bloomberg’s Matt Levine, crypto quickly recapitulates traditional finance’s history and lessons. He doesn’t intend it negatively. It’s good. Levine observes that many lessons from deep financial history are buried tacit knowledge; the old financial system does many things for many reasons, but most people have forgotten what those reasons are.
Everything that makes money operate in the real world is also present in bitcoin. That’s why it works as a currency, a trade settlement system, and a worldwide payment rail.
Bitcoin Monetary Economics Brief Introduction
Families don’t use money in the world’s sole socialist commune. Instead, they rely on nebulous favors and unspoken responsibilities. Friendship is cheaper than money.
Agents don’t need money and may rely on credit alone in a society where everyone is fully dedicated. You can avoid money’s resource costs if you totally trust every member of the economy, big or small. Credit is infeasible in contexts where money is key, according to Stefano Ugolini of the University of Toulouse. Agents must be able to make one-time transactions, according to monetary economists’ models.
Not monetary economists’ models. But we’re in a money-critical situation. In the absence of trust or transactional commitment devices, money is used to settle trades.
As a result, Satoshi knew about the monetary economics decades before. Using conventional currency requires confidence. Trust has been abused before in fiat currencies. In exchange for our trust in banks, they lend our money without reserve. We must trust them with data, not cash. High overhead is inconvenient.
If you don’t want to work, money or memories will do. Bitcoin is both, if you think about it.
Making money reveals business partners’ pasts. A Kocherlakota agent gives up resources now to gain money afterwards. Each agent in a memory-based system keeps a fictive ledger. Allowing for future transfers boosts balance.
This shows how money may widen our trading options. Cash makes us better. A lack, necessity, or economic availability is communicated. Finance enabled commerce, as described in William Goetzmann’s Money Changes Everything: How Finance Made Civilization Possible.
Resource prices were always a red herring. By facilitating trade and labor division, money and a stable monetary regime help society overcome trust, memory, and commitment challenges. In fact, it enhances our economic well-being.
Good Memory Comes from Good Money
We think of enemies as people we don’t trust or can’t fully commit to, which is almost everyone we meet today. Bitcoin is just not for enemies. There is always someone who needs money. We trust our friends, family, and other people we care about, so we don’t have to use a lot of money to do things that benefit both of us.
But when people don’t trust each other or can’t make a credible promise, money comes into its own. The idea that bitcoin is only for people who don’t trust each other is silly. All money is used in situations where we can’t fully trust our trading partners.
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