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Welcome to The Corruption of Real Money. This is Marco Chu.
One of the reasons why i think people is struggling financially today is because they do not understand
the difference between currency and money.
Currency are electric current. They must flow continuously otherwise they lose value.
Banknotes and digital currency we are using today are a type of currency.
Certainly we can buy things with it, but it loses value every single year.
That's the reason why saving currency in banks may not be a good idea today.
It may surprise you that many things were used as money throughout history.
Shells, fish, salt, cattle were once used as money.
Even Cigarettes were used as money in WWII.
Throughout 5,000 years of human history 2 metals, gold and silver,
they were discovered by human as money. The most important part is that they are not mandated by our government as money
They were discovered.
For something to be qualified as money, it must fulfill these properties
It must be a Medium of exchange. That means it can be used to buy things.
It must be a unit of account so that it can be used to express price of different goods.
It must be fungible. That means every dollar in the same. The dollar in my pocket is equal to the dollar in your pocket.
It must also be divisible,
portable and durable.
and the most important part is that it must be a Store of value over a long period of time.
Unlike currency where government can produce indefinitely.
There are only so many gold and silver minted every single year because of the production capacity.
This creates scarcity. Scarcity is what drives value.
This is the reason why gold and silver are real money.