Money is not valuable. Not by itself, at least. It is nothing more than a measuring stick that is used to calculate the amount of debt that someone holds. Dr. Craig Wright points this out in a recent post on Medium, which delves into how currency began and what makes money, money. He points out, “Value comes from the things we exchange money for.”
Money was created as a method to store commodity goods and to maintain a ledger value that corresponded to those holdings. This was even described in various parts of the Bible and other similar works that talk about how currency amounts were measured.
In the Late Bronze and Early Iron Ages, these systems continued, with silos being created to store grain. Wright explains, “Storages started to increase in size as towns and villages became larger. The resulting larger granaries served a communal and administrative purpose, and the farmers would be given a tally related to the weight of grain deposited.”
Currency originated from those deposits as grain receipts and the evolution began. Wright adds, “It led to the origin of trade and exchange. Ones who were better farmers continued to farm, whereas others who could now specialise in pottery, creating bricks, and other artisan trades would be able to exchange goods and services for part of the stored food. It is the origin of money. Value stems from the consumed goods that we have within society. Money is simply a call on that set of commodities which we all seek.”
And, along with that call, there is ow a need on the part of the issuing body to try to establish the value based on certain movements. Inflation is a mechanism that is used to hide the fact that individual personal wealth has increased, but at a rate higher than that of population growth. By manipulating the value of currency, governments can try to maintain the status quo.
Money is simply a ledger used to exchange goods and services across time. It allows people to specialise, create, and sell things now or in the future under contract for a promise of a share of the goods that are available at a later time,” explains Wright. “When scaled, Bitcoin is not deflationary. A vibrant growing capitalist society is deflationary.”
Bitcoin Core (BTC) fans want the digital currency to return to $20,000, which is counterproductive to the very reason cryptocurrency was created. Bitcoin is meant to be a global solution and is getting there, but it will take time. The level of scaling being seen in the Bitcoin SV (BSV) ecosystem is indicative of what is possible and what is needed, and is going to be able to provide the level of service needed to offer a truly global currency. At that point, Bitcoin will be the only truly legitimate money measuring stick.
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.