The Five Properties of Currency (and Not Fiat Money)

in bitcoin •  7 years ago 

Here are five properties of real money:

  1. Scarcity: limited quantities

  2. Fungibility: they are interchangeable

  3. Divisibility: the symbols are easily divisible, so you can divide them to smaller and smaller portions

  4. Durability: the symbols can survive the test of time won’t be worn out or disappear

  5. Transferability: the symbols can be easily transferred between owners

Gold has satisfied all five properties for thousands of years. It is widely accepted, divisible, scarce, durable and transferable. It has been suggested that the central banks of the world are manipulating precious metal prices to keep the masses from being alarmed.

Bitcoin are also fulfilling all five properties. The fact bitcoins are decentralized is a reason its price cannot be manipulated by central governments.

The difference between gold and bitcoin is its physicality. Bitcoins are basically an electronic unit; the blockchain ledger is the added quality of bitcoin ownership.

I encourage everyone to get involved in Bitcoin's naissance.

Feel free to leave a comment and upvote this article.

Yours truly,

  • Ben - chattrbucks
    October 13, 2017
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