The lesson we are going to cover the history of a currency an overall war fear currency is in general. So, first Kabo Whuffie a currency really to mean for banks to fear currency and it’s certainly any money declared by a government to be legal tender. To be legal tender and this basically means whatever is declared to be legal tender Where is Paperchase money or wherever it’s met or of some kind.
What is it essentially allows you to pay your debts. I muffing am not in debt so they apply to me and essentially the entire economy is just run on a debt basis. I owe you something you owe me some sense that if I go to a store and I want to buy something if I want to say boy a phone that costs thousand dollars that’s not is ridiculous these days from that more than dollars is essentially I owe them a thousand dollars on the phone.
And we exchange the goods and the currency essentially at the same time. But the whole idea is I owe money because it’s debt because I had received a card or potentially a service.
So if anybody declared by the government to be legal tender and it’s money into money without intrinsic with an intrinsic value. So this money that we have today is no. They don’t have any true value apart from the value that we perceive from it.
They don’t essentially create innovation, they don’t advance the economy because and how Droi creativity any of that stuff. So it is a monthly basis them with no intrinsic value. Most often wise Q is to know the truth on the etymology of words and the word fear. It is a Latin word that means letting.
You wrote that next let it be done with the Latin word that means let it be done. It’s essentially in the sense of an order or craze. Something has to be done that they see what it means and it was introduced it was the intro to use an alternative as an alternative to commodity money. Commodity money and Representative money rather than money.
And you might be thinking OK, where are they. You’ve probably heard of commodity arms over the both of these were I’m that you’ve heard of the word commodity when it comes to currency and just economics in general and commodity-based money is essentially money that is based on actual physical material a commodity.
So it’s historically it’s been metal-based. So go for example silver for example. On a side note the reason that on the periodic table that gold is Eiji G Geo would be our day which computes a lot of young people that are learning chemistry because it actually stands for Argenter an ingrate times our Gen term was the colour for gold and actually no sorry I’m talking about SOGA here.
So we’re sorry. So lets we more with recolour. So GG is for Sova an unfortunate term in great tones. It was essentially the word for. So the idea toward Moscow and the cold sober but that in a bit later on in Roman times it was essentially a giant term were essentially the words for money because they used.
So, with us as a bit of a sign. So going back to this commodity money is money that is essentially a fair core material and that is what is used to exchange. So, if I were to go, boy, this phone sort of exchanging dollars or exchange an X amount of let’s say mattress to say so in this case maybe it’s a thousand silver claims or five or seven grams of silver.
And that’s where commodity money is then-Representative money is a sort of a fee or like currency like in between that is a bad boy a sort of material a commodity and this is essentially the currency that we had for a long time when our money was back case.
Terrible. Really. Well but boy gold we were still using sore notes that said let’s say ten dollars on internee had some sort of face. The letters are on there. It had some writing as well but this was actually to boy some sort of material that you can actually come and go to the bank to exchange your money for an equivalent amount of commodity whether it was gold silver or white or whatever standard was being used at the time.
So it will introduce fear currency was an alternative to commodity money and representative money. It does not do this all in the capital. It is not finite. And it supplies fear currency isn’t because the government can just issue more where a commodity-based system and even say really a representative money basis then there’s only a limited amount of gold in the world or so around the world.
So there is a finite amount and that’s sort of very representative to what we have in the form of cryptocurrencies especially Bitcoin and thus or essentially more. That is what we used to do with commodity-based money where there was a finite supply but the actual or perceived value of each with a gram of gold might increase.
So we had to get a lot per gram of gold. So it’s not like once the is all mind that there couldn’t be any fluctuation in terms of where you could get with an X X amount of gold. It was just there was a finite supply.
That’s basically what the currency is. And also talk about evolution. Evolution of payment systems payments this payment system. And there was commodity money initially. D t. My name then there was Representative money. So these built on top of the commodity-based money basically just created an abstraction layer.
Then there was money. What a lot of the world is today. And then there was stuff like a check into the century just saying are you get paid at a later date and you just exchange it for or fear-based money just sort of me added convenience to the money so you didn’t have to always be given the lesson the notes for example to the other party you could give a check for example and they could just well just check it in whenever they wanted whenever they were able to.
Now it’s a lot safer. As I said are carrying huge sums of fear-based money. Then we had electronic payments in chronic and such wire transfer. And again this was still heavily based on the Fit currency system so you go to the say Western Union for example software that would do wire transfers take FASM dollars and they would transfer that to somebody else potentially around the world.
Then after that, it’s essentially the main money system we have now in. And that’s ironic you know in 2017 and this will electronic money and this is debit cards and yet technically this is just an abstraction layer for the money. But a lot of the world’s money is actually not backed by a physical note essentially because the notes are being printed most of it is just ones and zeros in databases and in computers.
So a lot of it does isn’t in paper form. That’s often that’s really cool to know. There are only two main data that I’m going to cover in this with is a bunch of the intermediary date them or just went to other countries and regions adopt it via currency really say the main one is the first use and the first use of fear currency first you will recall that in showing the roughly 1000 see the next important date is 1971 and in 1971 Richard Nixon he removed the Buckey in gold.
From the U.S. dollar. Because for a while it was like a thing. A representative based system where it was backed by a certain commodity which in this case was gold. Then Richard Nixon removed that and all the countries around the world followed suit.
So this has just been a quick overview of the history of the currency. Few like to know more. Feel free to reach out and as usual thank you for watching and I look forward to seeing you in my next lesson.
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