20 Durability Of Money

20 Durability Of Money

This refers to the ability for money to hold its value over time
Money Type Score (5) Why
Debt 2 Because a debt is information, the durability of it highly depends on the medium that it is recorded on, but most debts are between individuals without any sophisticated methods of recording it. These types of debts are prone to be forgotten and their lifespan does not extend more than a generation or two.
Commodities /Items 3 Most commodities and items succumb to the laws of entropy, degrade over time and go stale. They don’t tend to last years let alone decades and centuries.
Gold/Silver 4 Gold and Silver have strong ‘staying’ power and are extremely durable, but suffer from one leaky hole in the bucked, and thats the money required to store, transport and use it. All of those things cost a lot, and in essence drain from it its value. So for example, it could cost up to 1% of the value of 10kg of gold to transport it to another country safely in our modern day. Imagine doing that a few dozen times over the course of a few decades. But in terms of the metal itself, then it is very durable and resists all forms of degradation such as rust etc.
Fiat 1 Fiat money is very durable in that it doesn’t matter the condition of the money, as long as its genuine and you have more than 50% of the note, then its same value as a brand new one. The only problem with fiat money is that they were made to have its value inflated away. So even if you looked after your money in an air tight sealed box for 50 years, it would most likely have lost more than 60% of its value. In the 50 years we’ve had the US Dollar, it has lost over 90% of its purchasing power.
Bitcoin 5 As Bitcoin is data, its ability to not be corroded, torn, broken, burnt etc second to none. And it is, by design, meant to be deflationary, meaning that its value will always go up over time.

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