home
products
contribute
download
documentation
forum
Home
Forums
New posts
Search forums
What's new
New posts
All posts
Latest activity
Members
Registered members
Current visitors
Donate
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Search titles only
By:
Menu
Log in
Register
Navigation
Install the app
Install
More options
Contact us
Close Menu
Forums
General Forums
OffTopic
Let me donate bitcoins to support mediaportal (general Bitcoin discussion)
Contact us
RSS
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="MrCrabs" data-source="post: 996502" data-attributes="member: 101491"><p>A currency fullfills three major principles:</p><p> </p><p>1. It is a store of value - meaning not that it's value isn't allowed to change in comparision to other objects (like other currencies, food, shoes, etc.), but instead that it doesn't suffer from decay (so ice cream would not fit in here).</p><p> </p><p>2. It works as an ultimate, standardized acounting unit allowing to tell a Price in comparision to the currency. Otherwise you would have a price pairing for any two things you would like to trade which would make trading pretty hard.</p><p> </p><p>3. It is the ulitmate exchange medium - no need to have in stock what your trade Partner wants, he just accepts money.</p><p> </p><p>After all one can say: money is everything that works like money.</p><p>To work as money it also has to be rare, otherwise there would be no need to have any. So sand isn't a good currency in the desert, but might be in upper greenland. That'S also why any currency might become obsolete if infaltion increases to much. Then it isn't rare enough an will be replaced by other currencies or even pseudo currencies, like e.g. cigarettes in germany after world war II. </p><p> </p><p>Bitcoins fulfill all the above, so it is a currency, though a very new variant which is not dependend from a central bank. Only Point where bitcoins still suffer is that I can't pay in a real store with it since it is still bound to online trade - so it some kind lacks in Point 3 and that probably causes all the discussion about it.</p></blockquote><p></p>
[QUOTE="MrCrabs, post: 996502, member: 101491"] A currency fullfills three major principles: 1. It is a store of value - meaning not that it's value isn't allowed to change in comparision to other objects (like other currencies, food, shoes, etc.), but instead that it doesn't suffer from decay (so ice cream would not fit in here). 2. It works as an ultimate, standardized acounting unit allowing to tell a Price in comparision to the currency. Otherwise you would have a price pairing for any two things you would like to trade which would make trading pretty hard. 3. It is the ulitmate exchange medium - no need to have in stock what your trade Partner wants, he just accepts money. After all one can say: money is everything that works like money. To work as money it also has to be rare, otherwise there would be no need to have any. So sand isn't a good currency in the desert, but might be in upper greenland. That'S also why any currency might become obsolete if infaltion increases to much. Then it isn't rare enough an will be replaced by other currencies or even pseudo currencies, like e.g. cigarettes in germany after world war II. Bitcoins fulfill all the above, so it is a currency, though a very new variant which is not dependend from a central bank. Only Point where bitcoins still suffer is that I can't pay in a real store with it since it is still bound to online trade - so it some kind lacks in Point 3 and that probably causes all the discussion about it. [/QUOTE]
Insert quotes…
Verification
Post reply
Forums
General Forums
OffTopic
Let me donate bitcoins to support mediaportal (general Bitcoin discussion)
Contact us
RSS
Top
Bottom