Nature and history of money, property rights, fraud and the potential of crypto: The context
it might be a good idea to introduce some basic concepts to the community – especially nowadays as most people are focused on prices and short-term gains. Even though this might have been written down multiple times, I believe that it is valuable to bring it together in a unique piece of information. I decided to post this text to multiple subreddits to reach more people - please refer to my profile to see which ones. The selection is based on the fact that they are the largest in the cryptocurrency space here on reddit. A lot of people in the subreddit here do not understand basic but important concepts of money and its history – a state of affairs that I am motivated to help change.
The topics covered are of **philosophical** and **economical** nature. Crypto is way more than just asking the question ‘When moon?’.
**What is money?**
Over time, gold and silver were used as money. Money is defined as a means of exchange, storage of value and a unit to calculate prices with. But how did it come that across continents, so many different cultures used these precious metals as money? Consider the natural situation where the economy is not well developed. If you want to exchange something, you need to use barter which is inefficient and time consuming. The detection of a good usable as money is crucial to benefit society as it allows participants to use their most sacred resource – their lifetime – to pursue other things with the time saved from barter exchange. But how does a good become money? There is one common evolution that can be observed and logically explained – Ludwig Edler von Mises termed it the **‘Regression Theory of Money’** in his habilitation ‘Theorie des Geldes und der Umlaufmittel’ (in English ‘The Theory of Money and Credit’) from 1912. This theorem states that money has value as of now because it had value yesterday; put into context nowadays, one might say that this is the network effect. But if you ‘regress’ this back in time, there h...
Frank McCourt, American businessman and former owner of the Los Angeles Dodgers, is investing $100 million to rebuild social media’s foundation, for this, he introduced Project Liberty a few months ba...