Learn more about crypto with this collection
How to manage risk
How to analyze investment opportunities
The importance of long-term planning
Let's see different forms of money used historicaly:
And then...
GOLD & SILVER appeared.
121
2.17K reads
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"Bitcoin-backed banks will solve these problems. They can work like banks did before nationalization of currency. Different banks can have different policies, some more aggressive, some more conservative. Some would be fractional reserve while others may be 100% Bitcoi...
117
574 reads
It is a completely revolutionary form of money which is characterized by being:
123
736 reads
"Actually there is a very good reason for Bitcoin-backed banks to exist, issuing their own digital cash currency, reedemable for bitcoins. Bitcoin itself cannot scale to have every single financial transaction in the world be broadcast to everyone and inlcuded in the b...
117
593 reads
Initialy, gold and silver coins were issued as a first-layer form of money. Which means that coins where backed by its own value depending of the purity of gold/silver contained.
First records of coins usage trace back to a...
118
1.54K reads
Prior to the existance of Layered Money there was simply money.
Money is a tool which allows peers the exchange of goods within a consensus value.
117
2.72K reads
With the emerging layered money the arise of centralized entities was a matter of time.
The first to appear and take control of the monetary system were the Bank of Amsterdam and the Bank of England.
Both entities gave unprede...
118
1.24K reads
"The steady addition of a constant amount of new coins is analogous to gold miners expending resources to add goldto circulation."
116
718 reads
The Federal Reserve Act's stated the following purposes:
119
773 reads
The Bitcoin blockchain most fundamentally describes a record of transactions simultaneously kept by all peers in the network. Blockchain can be understood as a Distributed & Public Ledger.
Bitcoin mining is the process of verifying new transactions to the B...
121
608 reads
It was created back in 1609 and thanks to the world's first joint-stock company, the Dutch East India Company (Vereenigde Oostindische Compagnie, or VOC).
The VOC was the first example of equity investors providing capital ...
125
1.01K reads
Shortly after an earthquake in 1906 rocked San Francisco, the US immersed into a financial crisis.
Congress passed into law the Federal Reserve System on Decemeber 23, 1913.
The Fed was founded to combat financial crises, and it would...
119
871 reads
Franklin Roosevelt issued Executive Order 6102 on April 5, 1933 which instructed all "gold coin, gold bullion, and certificates to be delivered to the government."
The order was effectively a forced sale of gold in exchange for Fed notes (c...
120
785 reads
In 1971, the United States suspended gold convertability for the dollar; the suspension was supposed to be temporary, but the dollar never returned to any linkage with the commodity.
Two years later, the modern era of free-floating currencies
115
673 reads
Bitcoin originated back in 2008, forty-six days after the fall of Lehman Brothers. Its whitepaper was sent to a very small online community called the Cryptography Maling List.
The paper was written by Satoshi Nakamoto. The...
122
690 reads
BTC is digital gold. It's a form of money. People trust BTC because they believe it to be rare and valuable. It has a price in hundreds of different currencies. It doesn't origin...
124
617 reads
"Today, our financial system is broken. It works, but the fractures within make it prone to ruptures. It almost collapsed in 2008 and again in 2020. The Federal Reserve has done its job as lender of last resort in each circumstance and kept the financial system alive, ...
123
724 reads
The invention of Bitcoin has changed money forever and forced central banks to respond with their own iteration of cryptocurrency.
Worldwide, central banks are preparing to launch central bank digital currencies (CBDCs) as another second-la...
118
627 reads
"A puely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial instituton."
120
784 reads
"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. Banks must be trusted to hold our money and...
119
622 reads
Gold & Silver Coins were a huge implementation for humanity growth & evolution. Unfortunately they had some cons:
117
1.46K reads
The Bank of England was created in 1694 with the purpose to purchase new government bonds in an effort to rebuild the country after a crushing defeat of the English navy.
It was tasked with taking custody of precious metal,...
117
816 reads
First of all we need to see the difference between first layer & second layer money:
121
1.27K reads
In 1944, world leaders gathered at a hotel in Bretton Woods, New Hampshire and formalized that all currencies besides the dollar were forms of third-layer money within the dollar pyramid.
Federal Reserve notes still promised the be...
117
784 reads
CURATED FROM
Business Administration and Management Student | Blockchain, DEFI & Web3 | Social Worker | "Fix the money & fix the world."
Understand money history and the layers that conform our monetary system, as well as the revolutionary form of money Bitcoin.
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Money is a universal means of exchange. A technology that is enabled by something that has the highest proportion of trading ability to its utility (gold can be used for trade but also for jewelry & chips).
Money needs 5 characteristics. It needs to be:
Paper Money was pushed as a 'fiat' currency due to an attractive quality: it was guaranteed to trade by the state authority for a specific weight of gold or silver, and couldn't be melted down or devalued.
In the old days, a coin of some metal was easier to exchange than to implement a barter system. Of all the metals, gold was the logical choice.
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