Welcome to the first article of Bitcoin and money. Here you choose, as a part of our Community, if we can put Bitcoin and money series to continue or not.Do you want to know what money actually is? Why do we need money? How Bitcoin fits in this context? Then you are exactly right here! Learn in this Chapter, what is the least know.
Contents
Bitcoin and money? But what is money?
In this Chapter I’d like to begin with an anecdote.Two young fish are swimming through the sea and meet an older fish. This greets you when you pass by the two youngsters for a swim. “How’s the water today?” and floats his way. After a short period of brooding the young fish asks the other “What the hell is water?”This short story is intended to illustrate that we often to state the obvious, to us at any time, surrounded by rarely thought. This is true on the most basic things in our everyday life.The economy was and people, for us, is omnipresent. It includes all rational Action, which is concerned with the fulfilment of human needs through the use of scarce resources. In their midst, the Enigma is money tables phenomenon.Every person in the modern world needs it, but hardly anyone really understands it. Almost everyone comes into contact every day with money, without ever in-depth thoughts on why it occupies such a high place in the economic life and the society. But as long as money is not understood, is a rating of Bitcoin in this category is not possible.In addition, the value of an understanding of money is crucial and goes beyond the Bitcoin-money-or-Gold discussion far. is You understand what money is and why it is there at all, it can enrich your life in every way. Thus, I am not referring only to economic issues but fundamental feelings, such as happiness and satisfaction.However, it is in the case of crypto Monday, of course, in the Crypto, and of course, to Bitcoin.Before we apply but just a thought on the classification of Bitcoin as a possible form of money to waste, we must throw a glance on, why is there money at all, what its functions are and what is the history of its development.In today’s part of the Bitcoin and money series we talk about why we need money actually, instead of limiting us to a trade in goods.Let me in our Telegram group know if you would like to read more such article. Join our Channel and mark me in your message, where you simply put @MrCoinlover and your Feedback send as a Message in our Channel.Trade on the most successful Crypto-exchange. If you’re looking for a reputable point of contact, to act with real crypto currencies, then take a look at our Binance Test 2019! In this article, we have analyzed all the features and benefits of the crypto-exchange in more detail and evaluated. The most the most popular crypto-stock exchange today! Now on Binance sign up.
The need of money
Today’s science is largely agreed that the already Aristotle declared rationalist attempt to explain the emergence of money corresponds to the facts.What we refer to as money, is since the beginning part of human development. The easiest way for people to exchange something of value, is through the trade of goods.These goods have been traditionally used for the satisfaction of needs. A need is defined by the Perception of a defect. Each person felt such needs and is motivated to satisfy these.The direct trading of goods is, however, only within small circles impracticable, in which a small number of goods is produced. The more complex and extensive a market economy is, the greater the problems of a goods economy. One or the other knows, this problem may be in connection with the coincidence of the needs.To keep it simple, it is Essentially the following: The direct exchange of goods involves two issues. The first Problem manifests itself in the fact that the execution of the barter transaction requires two adequate trading partner, the want to each trade in your Good and the Good of the other at the same time and in the same place. The search for such an adequate trading partner, costs of resources that cannot otherwise be used more and thus the direct barter expensive to make.The second Problem is the need for a certain degree of trust between the trading partners. The necessary level of trust is dependent on the nature of the exchange business and the quality of the goods offered for barter. In the case of one or the other will ring when the word trust is likely to directly to the ears and say: This includes Bitcoin, however, has the solution! Bitcoin is trustless. Yes, keep the calm in the back of the head. But now back to the problems of a goods economy.
Efficiency through indirect trade
The solution for both the problems of the indirect trade with the help of the medium of Exchange, which represent minimizing both the costs for the completion of the exchange business, as well as Substitutes for the necessary trust in offers.If, theoretically, a lot of goods can act as a medium of exchange, it is in the highest degree inefficient, to always seek new goods, which the other party is willing, in the case of a specific swap deal to accept. To ensure a significant increase in efficiency, it is therefore essential to keep the number of medium of Exchange to a minimum. A Well, the the role of a widely accepted medium of exchange, by means of claims, is called, according to our present view of money.Money is first and foremost a social Convention, created to strengthen the trust of Strangers in their economic interactions. In theory there is nothing that dictates what or what can not be used as money.Karl Menger, the founder of the Austrian school of Economics result, results in money in a natural way from a free market economy. From the date on which such a Well is not due to its physical properties, but its General acceptance as a medium of exchange is acquired, it is a monetary medium.Currencies meet, without a doubt, this Definition. The concept of money, however, is not congruent with the concept of currency. To define money exclusively by currencies, from an economic point of view, insufficient. Currencies only represent a Form of money, which is issued usually by a state’s sovereignty.In a broader sense, everything that is accepted in the framework of a market economy for the payment of goods and to cover other economic commitments, as well as the money referred to.
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Would you like to know in further Parts, what exactly are the basic functions of money? Do you want to learn how the history of the development of the money went and why it develops? Do you want to understand how Bitcoin fits into this development, and whether Bitcoin is the future of money, only a store of Value, or maybe nothing of both?Give me your Feedback so that we can provide you with more Content that interests you really! A part of our Community and for coming today in our Chat. Send a message and write us what you think.You don’t want to buy Bitcoin, you know, but where? To decide the right provider is not always easy. Therefore, we recommend that you take the time to look at our Bitcoin Broker & exchanges comparison. Often several providers are already required to really get all the Cryptos to cover. See for yourself: Bitcoin Broker & stock exchange compared with that now read. [Image Source: Shutterstock]