5 ms·
I wish we'd stop calling bitcoin "currency"— that is not remotely what it is. Currency has a number of important properties that allow it to fill its function,
by tbabb 7y ago
I wish we'd stop calling bitcoin "currency"— that is not remotely what it is. Currency has a number of important properties that allow it to fill its function, and cryptocurrency has basically none of them.
I wrote about this in 2017, but it is as relevant now as it was then: https://www.bzarg.com/p/what-bitcoin-shows-us-about-how-money-works/ https://www.bzarg.com/p/what-bitcoin-shows-us-about-how-mone...
- 0x54D5 7y agoNo one really cares what you think when anyone in Japan can walk into a store and buy stuff with Bitcoin.
- wysifnwyg 7y agoAfter reading through your blog, I'm still unsure which properties Bitcoin lacks which nation sponsored currency has.
- chadmeister 7y agoHow about national sponsorship for one...
- sedeki 7y agoWhat exactly does it mean when people say that a currency is backed by a government? ”Backed” to me implies, e.g., redeemable for gold which is clearly not the case for the US dollar. Is it that the government issue bonds denominated in that currency? But that has nothing to do with the money supply per se...? Please explain.
- DenisM 7y agoThe US dollar, if you live here, can be traded for a bit of freedom - pay off the IRS and avoid jail time. It's also good to settle a debt - the government will force the creditor to accept USD.
- gdhbcc 7y agoIf I try to buy a macbook in cash in Portugal, that is illegal. I will be fined for it. Does that mean the euro is not a currency?
- Sargos 7y agoNational sponsorship is not a requirement for a currency
- wysifnwyg 7y agoWhat is it about being backed by a nation which makes a currency more valid?