I have the habit of randomly asking people and trying to know how much they understand about Money. The first question that I usually try to somehow sneak into my conversation is: What is the difference between Money & Currency?
Not to my surprise, not even one person has been able to tell me the correct answer, so far.
It should surprise you too as few answered by saying: the currency is money and money is the currency. If it doesn’t surprise, you are in trouble my friend like those guys I spoke with. I cannot tell the depth of pain I feel when I receive such answers and sometimes pity them too.
However, I understand people are too busy winning bread for their family and earning dollars for the future. They don’t have time to contemplate all this. The part of the problem is that they are not even aware that they are in a problem by not knowing the problem statement itself, i.e., Money vs. Currency.
But that’s what I think precisely Satoshi Nakamoto (creator of Bitcoin) wanted to tell us or instead wanted to compel us to think about. Satoshi wrote on the first Bitcoin’s block this:
The Times 03/Jan/2009 Chancellor on brink of the second bailout for banks.
What it signifies is, Satoshi acknowledged that the heads of the nation are always going to do whatever it takes to continue to maintain their monopoly over the monetary system. Whether it be the bail-outs of 2008 or be it the bail-in of 2013 in Cyprus where banks took away upto 40% of citizen’s savings. (btw…don’t be like Cyprus citizens)
Knowing this, he created Bitcoin to give people the option to opt-out of the system that is insidious, inflation-prone, and is acting against people’s best interest always.
Satoshi understood the nature of paper money (fiat) we have now and said, “The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust.”
Further acknowledging the so-called problem of 21 million bitcoins when a few million are lost, he said, “Those coins can never be recovered, and the total circulation is less. Since the effective circulation is reduced, all the remaining coins are worth slightly more. It’s the opposite of when a government prints money, and the value of existing money goes down. Lost coins only make everyone else’s coins worth slightly more. Think of it as a donation to everyone.”
How generous he was to design a system like this!
I would personally prefer to live in a world where the value of my money increases like this:
So don’t give up on money. Know money before you start giving up your life for it !!
Adios folks !!
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Hey there! I am Sudhir Khatwani, an IT bank professional turned into a cryptocurrency and blockchain proponent from Pune, India. Cryptocurrencies and blockchain will change human life in inconceivable ways and I am here to empower people to understand this new ecosystem so that they can use it for their benefit. You will find me reading about cryptonomics and eating if I am not doing anything else.