Many people claim a fiat dollar is worth more than cryptocurrency.
Many more people buy the idea of a dollar bill worth more than a piece of paper 🤣!
Here is a myth: does a dollar bill actually worth what it claimed to be 💵?
What is money then 🤔?
According to the Central banks, you can argue that the money is a valuation measurement or a trust-based banknote.
➡️ If you believe the money is a ruler 📏 only, then we can have other rulers rather than using the central bank certified ruler 😉.
➡️ If you believe the money is a trust-based banknote, the central bank can treat you to believe in it because you trust them 100% 😒.
Which route would you like to pick 🙄?
I would pick a ruler route 📏.
The reason is based on the history of the money.
In general, everyone reads about the history of money, which tells you that history starts with bartering - exchange without money, gold standard, then fiat currency.
However, human history suggests that a pure bartering society did not exist at all. Instead, it is within the money exchange society.
Bartering is just another ruler if the currency ruler is broken.
The modern economy foundation has been created from pure imagination to tell people to buy into the fiat currency because it is a more stable and safer way.
However, money dies, too, just like a part of the human life cycle.
So trust dies with the money but not the other way around since there are always people to trust money even if the money is obsolete.
What other rulers used in the part of human history?
In an agrarian society, cattles were used to measure valuation. Although there was gold trading, people rarely carried gold around for trading rather than a piece of paper stating how much gold had been traded.
In an industrial society, commodities were used to measure valuation. As a result, fiat currency was dominated at the beginning of the digital revolution.
In the digital society we are heading into. There will have something to become a new ruler to measure valuation.
Perhaps cryptocurrencies are the ones. No one knows for sure.
So the next time when your friends argue about cryptocurrency valuation, we can argue that it is one way to measure the valuation of the current goods and services 😉.
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