Definition of Money

What is money? Currency is widely used and accepted in transactions involving the transfer of goods and services from one person to another. Economists distinguish between three currencies: product currency, legal currency and bank currency. A product currency is a product whose value is the value of money. Gold coins are an example of the product currency. In most countries, the product currency has been replaced by the statutory currency. Fiat 's money is well, its value is lower than the monetary value it represents. Dollar banknotes are examples of fixed money because the value as printed paper is lower than the value as currency. Bank funds include credits for books provided by banks to depositors. Transactions using bank deposits checks include the use of bank funds

* Bamboo coin? The definition of currency is as follows. "Current exchange medium in the form of coins and bank notes" I would like to add this definition, but it needs to be very different from other funds. For example, cents and dollars are different kinds in the same currency. Is the Bumble Coin a simple dollar denominator? In order to prove that they are not, we need to establish a philosophical experiment. Suppose there is a new Bumble * company that is exactly the same as Bumble but does not use Bumble coins, but sells that service directly in dollars. Let's say that Bumble and Bumble * doubled the service price in dollar denominations. So the same service, 1 bumble coin or 1 dollar now costs 2 bumble coins or 2 dollars. If the bumble coin is the same as the US dollar, the user behaves in the same way even if the price changes. This does not apply to real life.

The simplest currency definition provided in Merriam-Webster dictionary is "How to pay for goods and services and pay for people for work". If you drill down the definition deeper, money has four main functions. It means that it acts as a medium of exchange, as a value store, as a unit of account, as a measure of value. Although the price of bit coins varies considerably compared to coins, sharp rise or decline in the short term is common. However, in the long run, it is clear that Laszlo Hanyecz, who purchased two pizzas with 10,000 bit coins in 2010, is different. At the time, those 10,000 bit coins were worth about 25 dollars. Today (September 8, 2017), they are worth over $ 40 million! Therefore, Bitcoin can be valuable storage, but it is only for long-term cases.

The concrete definition of the ideal currency of John Nash is (for a long time) the stable monetary value. Bitcoin can not satisfy John Nash 's ideal currency definition, as the supply of this currency must also operate on its basic economy. This led us to amend the Nash of ideal currency: So here is the possibility of "asymptotically ideal currency". Starting with the notion of value stability related to the domestic price index related to the territory of the country, there is also a natural and logical concept based on international value comparison. The currencies being compared, such as the current euro, the US dollar, the Japanese yen, the British pound, the Swiss franc, the Swedish krona, etc., can be seen critically by one user and a user who can choose whether to choose. This leads to high quality pressure, which leads to a decline in the value of inflation.

Why should not Bitcoin be expanded: Is Bitcoin a product currency motivating existing financial systems to achieve a global currency balance?