26 The Unforgeable Costliness Of Money
When we consider money and what it is supposed to do for us, we learn that the way in which it conveys value is by first holding value. For this reason, all things that require no time to produce or acquire, and are not needed by anyone are effectively worthless. So for money to perform its job well, it should have a ‘cost’ attached to acquiring it and producing it.
|Money Type||Score (5)||Why|
|Debt||4||A debt literally means what someone is owed due to work that was done for someone. If I agreed to wash someones car and they said they would ‘make it up to me later’, the value of that ‘debt’ is attached to the work that the debt is connected to.|
|Commodities /Items||3||The cost of producing and acquiring a commodity or item allows it to have its ‘intrinsic’ value, but items can be counterfeited at some level, whether it be adding (for example) non-salt particles to salt to add volume, adding some low quality dates to good ones in increase the volume, or making a fake item entirely like a fake Rolex watch.|
|Gold /Silver||4||Precious metals are extremely hard to source, refine and counterfeit, and due to this, its is very hard to counterfeit its value. But its not impossible, Even the most seasoned professional can be fooled by fake gold or gold that does not have 100% purity. That is why previous nations who were on the Gold standard began watering down their Gold coins to try to get more ‘value’ out of the metal.|
|Fiat||1||Fiat gets the lowest score for two reasons. Because making counterfeit money isn’t as hard as one may think, and because the paper doesn’t have any intrinsic value. It only has ‘face value’, meaning the stated value that is printed on and enforced by the government using force.|
|Bitcoin||5||Bitcoin is the hardest form of money, and one of the ways to demonstrate this is the fact that every single coin mined required energy that cannot be counterfeited, faked or scammed. And when someone sends you Bitcoin into your wallet, it is impossible to send a fake Bitcoin.|
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