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/biz/ - Business & Finance

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3898898 No.3898898 [Reply] [Original]

Money emerges out of barter conditions that permit more complex forms of trade and economic calculation. The distinguishing characteristic of money is that it is the general medium of exchange, evolved from private enterprise from the most marketable commodity. On this Mises wrote,

>There would be an inevitable tendency for the less marketable of the series of goods used as media of exchange to be one by one rejected until at last only a single commodity remained, which was universally employed as a medium of exchange; in a word, money. (The Theory of Money and Credit, pp. 32-33)

In short, money is the thing for which all other goods and services are traded. Furthermore, money must emerge as a commodity. An object cannot be used as money unless it already possesses an exchange value based on some other use.

Observe that a bitcoin is not a thing; it is a unit of a non-material virtual currency. A bitcoin has no material shape; hence from this perspective the notion that it could somehow replace fiat money is not defendable.

Bitcoin can function only as long as individuals know that they can convert it into fiat money, i.e. cash on demand.

Bitcoin is not a new form of money that replaces previous forms, but rather a new way of employing existent money in transactions. Because Bitcoin is not real money but merely a different way of employing existent fiat money, obviously it cannot replace it.

>> No.3898920

how fucking retarded are you op

>> No.3898939

>Observe that a bitcoin is not a thing; it is a unit of a non-material virtual currency. A bitcoin has no material shape; hence from this perspective the notion that it could somehow replace fiat money is not defendable.
Hey old man. You know cash is going to be a thing of the past soon enough, right?
The vast majority of fiat is all ones and zeros on a computer anyway.

I didnt read the rest of your post btw

>> No.3898958

>>3898898
Fiat is essentially a shitcoin that the developers can print unlimited amounts of

>> No.3898968

>>3898958
ok, but
>Bitcoin is not real money but merely a different way of employing existent fiat money,

>> No.3898982

>>3898898
Bitcoin is a better store of value than inflationary Fiat. It can fulfill every function of Fiat more effectively, including that central trading function because Bitcoin is Bitcoin everywhere for every country. Your rant suggests Bitcoin or similar will in fact replace Fiat.

>> No.3898996

>>3898898
Bitcoin is literally just a way to bet against the banking system, we are on the verge of a global economic crisis so anyone who has not bought any bitcoin is a brainlet.

>> No.3898999
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3898999

>>3898898

Mises is cool, but the regression theorem goes against what we know about the development of money from anthropology and history. There was not a recorded "barter" stage of commodities among familiars, only occasionally between strangers. What developed first was a credit system. Money actually came before widespread barter.

The thing about money that people don't understand is that money IS a network. Each type of money uses various tricks and strategies to get people to trust that such and such money network is "trustworthy" so it will serve as a good store of value and will be widely accepted. Gold uses the ubiquity of the precious metal and its various physical qualities. USD uses its hegemoney. Bitcoin uses the blockchain.

The tokens that represent units of money do not need some use other than as tokens to be good money. This is a fundamental misunderstanding of how money developed and how money works. Money is a network and everything valuable about a money is derived from the robustness of this network.

>> No.3899011

>>3898898
And now for an application of Mises' economic theories that isn't clinically retarded:
https://www.coindesk.com/economic-case-conservative-bitcoin-development/