What is Money?

Apr 20, 2022

Author: Elle Miller


We all know we need it. It makes the world go around. Whether you hate it or love it, it’s undeniable that money is important to live and thrive in the world we live in today.


Money made a long way since its first inception after the barter and trade era. With all the development of money in the last couple of centuries, have you ever asked exactly “What is money?”


Precious metals. Gold and silver. Paper money. Ones and Zeros in a bank account. Now, the faces of dogs and just some letters. 


This 35-minute documentary dives deep into the history of money, the future of finance, and how crypto and blockchain is ending money as we know it. 




One of the interesting points the documentary discussed was the value of money. Back in the day, gold and silver were used to represent the value of money. These precious metals were chosen because they were scarce, difficult to find, and easy to carry. 


When we had more sophisticated cities and governments, paper money was introduced. The dollar, yen, yuan, euro – they are all being used to represent the value of a currency too. BUT the amount of cash MUST be backed by gold reserves of the country. At one point, 1 ounce was about 35 US dollars. 


All that changed when Nixon decided that extrinsic value is no longer needed to print money. This gave centralised institutions ALL THE POWER. They suddenly had the ability to print so much money depending on the perceived value and power of a country. That’s when the dollar’s value grew and they demanded their status.


That’s why it’s called FIAT money. (Fiat means a formal authorisation or a decree.)


Now, crypto is challenging that through a DECENTRALISED money system. DeFi solutions like Bitcoin are challenging the notion that one institution can determine the value of money, the amount of money in circulation, and who can gain access to that money. It’s inverting the power structure!


And that can mean different things for everyone in the world. Early adopters can gain thousands of dollars, smart investors can turn their money to millions, and the world can look very different in the next 5-10 years.


In fact, Bitcoin is one of the fastest growing asset classes in history! It grew TWICE as fast as the internet and it's growing even more day by day. Its value is growing much faster than any stock in the market, gold, and of course much more than inflation. Imagine: that’s only ONE of the many cryptocurrencies available today.


If you would like to diversify parts of your portfolio in to long term holds in crypto, I would invite you to check out our HODL portfolio that has over 20 well researched coins and tokens that we believe will be here for a long time and will be an integral part of the new financial system that will become a major part of the future of financial markets.


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