I learned this on textbook “The Economics of Money, Banking and Financial Markets” of Prof.Mishkin, it’s little bit complicated, thank you Sprout for making this illustration video, it’s more easier to learn❤❤
I wish this would have began with gift economies, which is how we lived on this planet for the majority of our existence as a species. If someone needs something, and one can help, they just do! We like every other animal on Earth did not and still does not need money. It is a tool that mostly is used to exert power over one another. If we evolved into it and now know how destructive it is, we can consciously evolve out!
If we ever move to a true global economy and global government, where recourses are distributed equitably, another credit system might be invented like you see in Sci Fi books. Nobody will ever go hungry, but you'll still have some station based on your usefulness to global society. What counts as useful will change as well. In a world where menial labour will be done by robots, humans will be able to pursue more enriching pursuits. And if you don't want or can contribute something to this community, you don't have to.
We all imagined the robots would do the menial labor and not the creative work - but all of the recent advances in AI seem to be going in the opposite direction. What does the world look like if all of the brain work is done by computers and all the menial labor is done by people?
Why do people keep saying that bitcoin and other cryptocurrencies are “finite”? Because it’s not true it’s just more of a clever marketing scam. Yeah, sure on the surface, there are only so many coins… but much like a one dollar fiat currency (USD) being split into 100 cents it can, and is, subdivided as well. Except each bitcoin is subdivided literally millions of times into fractional shares and there appears to be no limit on how many times you can subdivide it - so what the hell is the difference?
Why do people keep telling me that my birthday cake is “finite”? What a marketing scam! I can easily cut my cake into pieces, and then I can cut those pieces into smaller pieces, and I could keep doing that forever! So, clearly, my birthday cake is infinite, not finite! Oh, that’s right. Cutting cake into smaller pieces does not actually generate additional cake. The amount of cake does not change, regardless of piece count. The same is true for bitcoin. The same is NOT true for USD or other fiat currency, as new dollars/units (additional birthday cakes) are constantly created (baked) by central banks (the baker). If you still don’t get it, consider learning the fundamental difference between multiplication and division.
@@derek.seaborn well that explains why people go actually insane whenever they obtain 0.01 bitcoins (the average bitcoin owner probably owns 0.0000000001 bitcoins)
Barter. Never existed in any meaningful way. Anthropologist David Graeber spells this out in his successful book Debt, the first 5000 years. Barter is a myth generated by old economists and continued to this day. Social Credit seems to be how many societies successfully handled workloads, including modern tribes. Barter is a one off thing observed rarely amongst different groups, it never led to means of exchange tokens. Even Adam Smith used credit at his local grocer, he neglected to mention it. It also is a means of trust. Good luck selling (mainly) dead artists works.
@@sprouts I see you've relisted the video. Did you actually look into this? Because he's right, barter is largely a fantasy conceived of provide money a history it never really had. I was impressed by your decision to unlisted the video. I'm disappointed to see it relisted without even a note in the description.
Why should you invest with Masterworks in the art marked? Art is the most korrupt marked in the world, it's even safer to invest in drugs or unstable countrys than in art.
‘Sometime Around a thousand years ago so smart business man’ How about starting with the truth if you’re going to do a video on a topic!!! THOUSANDS OF YEARS AGO the KNIGHTS TEMPLAR invented a note which would later introduce the system of money!
- spreads the barter myth - misleads about fact that government-backed currencies go back to ancient times - talks about trusting institutions but not about the trust of local debts between individuals that predates currencies - talks about how terrible inflation is for those poor plebs who cant budget but not the volatility of metal backed currencies
crypto is not even money. crypto is not even close to being anything like a fiat-currency. the title of this video confuses a pump-n-dump-scam-and-money-laundering-method with actual money. the false-equivocacy-fallacy runs wild in crypto, while crypto is CLEARLY worse than ANY actual fiat-currency in history in terms of utility/efficiency/safety/transferability, including all the hyper-inflating ones. crypto-scammers just keep lying about ALL crypto being not 100% intentionally monopolistic by design, too. ALL "smart contracts" (also clearly a misnomer, cause they are insecure==dumb) are clearly designed to be monopolies, and all else is just a farse.
Mansa-Musa made his first trip to mecca in 1324ce, with a huge caravan of gold, that inflated the value of gold in every city that he passed through (all through north Africa), inflating the gold price in Egypt for 12 years. Spain (after killing 80% of the central+south Americna natives by diseases alone) transported so much gold from America to Spain in such a short time, that a WAVE of gold-inflation swept all over Europe. This is insignificant to how much gold we can get RIGHT NOW from asteroid-mining (besides other elements, that are rare near earths surface), but SOMEHOW Elon Musk chose to scam dumb people instead, and chose to lose billions in half a month with inflated share values, because it is slightly easier to be parasitic
Money is a monetary energy that uses for store of value and transfer. If anyone can reproduce/control money by printing (Double spending)& mining (Institution issuer), then you will have a leak on the boat with an "open system", nothing would work based on the engineering factor. But Bitcoin fix this. Fiat is currency; gold is dead money; Bitcoin is money. If you still do not understand it. No one can help you. ;D
There is an opinion that barter isn't a real stage of evolution, but an artificial explanation. Only God knows what precided "universal goods" like metals. Money (even those that are made of gold) a very fiat, but they had an advantage they were accepted based on their weight. First money were issued by very powerfull states: Persia and China. On the other hand metalls bars of known weight were quite popular among tribes and city-states like Athens, Sparta and Rome (early). Bitcoin & Co isn't quite money but rather an investmen asset. Using them for exchange isn't nice at all, even though it is possible (so they are poorly performing at least one of three functions of money).
It would be nice to think that the financial arena exists in a vacuum, but when it comes down to it, Power trumps Trust. Fiat money is "trusted" because it's enforced from the barrel of a gun. There are all sorts of wars being fought, on culture fronts, on economic fronts, on religious fronts. So the future of the world and of money could go one of 2 ways: either we shake off the shackles of tyranny and people are allowed to choose their own investing strategies, which could likely be a multi-owned blockchain system. If governments succeed in becoming more totalitarian, my guess is they'll create their own fiat virtual currency-- a digital currency system where they ultimately can control who gets wealth and who pays how much in taxes. It would be basically the same system of trust, but would save lots of cost when you can simply type and click money into existence without having to print it.
Future is building towards digital payments and digital currencies, bitcoin and other cryptos built with block-chain technology are the foundation towards a digital currency era. side not: first here again
