Reading reaction of Bitcoiners to Taleb @nntaleb , another confusion by Bitcoiners is Money vs Currency.
Two different things.
Money is Trade Imbalance.
Currency is the THING utilized to pay this trade imbalance.
Example
1/
Two different things.
Money is Trade Imbalance.
Currency is the THING utilized to pay this trade imbalance.
Example
1/
A trader in Lebanon ships 100 thousand dollars worth of olive oil to a trader in France and receives 80 thousand dollars worth of french wine.
The trade imbalance is worth 20 thousand dollars. This is money created.
2/
The trade imbalance is worth 20 thousand dollars. This is money created.
2/
The french trader can send additional wine worth $20 thousand, in that case erasing the money (meaning erasing the trade imbalance).
But, the french trader can also send $20 thousand in paper or electronic cash. That is Currency, NOT money.
3/
But, the french trader can also send $20 thousand in paper or electronic cash. That is Currency, NOT money.
3/
Bitcoiners say that today that $20000 can be $20000, tomorrow can be $30000 and the day after can be $12000.
Eh, no. Supply chains would collapse. World would go full carter, caveman economics.
4/end
Eh, no. Supply chains would collapse. World would go full carter, caveman economics.
4/end
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