Blockchain Technology and Cryptocurrencies
Shaping the Financial World
Money
Plato:
- Money is a 'symbol' devised for the purpose of exchanges
- Opposed using gold or silver for money
- Solves the 'problem of commensurability'
- 'Money is a guarantee that we may have what we want in the future. Though we need nothing at the moment it insures the possibility of satisfying a new desire when it arises'.
- Four absolutes to have 'Universal Value':
- Durable, Portable, Divisible& Intrinsic Value
Modern Characteristics:
Durable, Portable, Divisible, Uniform, Acceptable, & Stable
What is the Role of Money?
- Medium of exchange
- Store of value
- Unit of account
Fiat Currency
- Represented by:
- Central Bank Notes
- Central Bank Reserves &
- Commercial Bank Deposits
- Reliesupon System of Ledgers
- Very Significant Network Effects:
- Accepted for Taxes
- Legal Tender for All Debts Public & Private
- Accepted throughout Economy/Optimum Currency Area
Money's Future?
