Why cryptocurrency is so revolutionary in ten minutes.

Introduction:

This post is a brief discussion of money versus currency, and the blockchain versus a regular ledger.

In regards to money versus currency; the main points are that money is a store of value, a unit of account and a medium of exchange, which belongs to the bearer. Currency is a representation of money, which serves the same functions, but belongs to the government, and can used as a method of control.

In regards to the blockchain ledger versus the regular ledger; the main points are that a ledger is simply a record of the transfer of money or currency from one person to another. But blockchain ledgers are specifically created to fix all the deficiencies of a regular ledger. Blockchains are better because with regular ledgers the recording happens before or after the transfer of money, and human error and deception can create errors. But with a blockchain, the transfer of money is the recording of the transfer, so there are no errors and if the blockchain is encrypted and unchangeable there are no opportunities for humans to deceive or make mistakes in the ledger.

These two concepts are why cryptocurrency is so revolutionary, because it returns full ownership and control of money to the people.

Discussion: Money versus Currency

Money

FROM INVESTOPEDIA: Money is a medium of exchange; it allows people to obtain what they need to live. Fiat money is government-issued currency that is not backed by a physical commodity but by the stability of the issuing government.

FROM MERRIAM-WEBSTER DICTIONARY: 1: something generally accepted as a medium of exchange, a measure of value, or a means of payment

Money is a tool used in commerce and has three characteristics:

A store of value. A unit of account. A medium of exchange. But most importantly It’s owned by the bearer and there are no rules controlling what the owner does with it.

Currency is different from money.

From Investopedia: Currency is a generally accepted form of payment, usually it is issued by a government and circulated within its jurisdiction.

The government of a country issues laws and rules regarding the movement of currency.

The power “to coin money” and “regulate the value thereof” has been broadly construed to authorize regulation of every phase of the subject of currency. Congress may charter banks and endow them with the right to issue circulating notes.

Inasmuch as “every contract for the payment of money, simply, is necessarily subject to the constitutional power of the government over the currency, whatever that power may be, and the obligation of the parties is, therefore, assumed with reference to that power.

• It’s a store of value.

• It’s a unit of account.

• It’s a medium of exchange.

• It’s issued by and owned by the government.

• **The government issues the currency, it belongs to the government, you are using the government's currency, and your use is controlled by the government's rules regarding acceptable use of it's currency.

• The government can use these rules to control it's people, by controlling what they can do with their currency.*

Blockchain versus a ledger

A Ledger

A ledger keeps track of the movement of money. A entry in a ledger documents the exchange of the store of value A ledger is prone to error A ledger can be wrong due to counting or recording.

A Blockchain

A blockchain is better because the exchange is the record, the record is the exchange. An entry in a ledger documents the exchange of the store of value, while in the blockchain, the recording of the exchange, is the exchange, so there can be no error in the recording of the exchange. In other words, the act of sending someone money, is also the act of recording the money transfer. This secure recording of the transfer is made possible by “cryptography” which by definition is an unbreakable code used by the government to transmit secrets. But is now used by the blockchain to allow you to use your cryptographic code or private key control to control the movement of your money. This use of that cryptographic key or private key not only initiates the transfer of money from you to someone else, but also transcribes or records the transaction on the ledger called the blockchain. Furthermore, the use of the cryptographic key or private key also creates a permanent and unchangeable record of this transaction on the blockchain. This is why the design of the blockchain creates a more accurate ledger, because the transfer of money is also the creation of the ledger or record of the transaction. In this way cryptography is used in a blockchain to give the owner of money complete control over their money, and to provide everyone a correct and unchangeable record of all transactions. This is why it’s called cryptocurrency, because the currency ownership is protected by cryptography, an unbreakable code, and it creates a record protected by that cryptographic code also.

Summary

In regards to money versus currency; the main points are that money is a store of value, a unit of account and a medium of exchange, which belongs to the bearer.

Currency is a representation of money, which serves the same functions, but belongs to the government, and can used as a method of control. The government makes lots of rules about currency which place many limitations on what and who you transact with to influence world events and control the populous.

In regards to the blockchain ledger versus the regular ledger; the main points are that the blockchain as a better ledger then most ledgers, which are merely tools for recording the transfer of money between people and businesses. Blockchains are better than ledgers because with ledgers the recording happens before or after the transfer of money, and human error and deception can create errors. But with blockchain the transfer of money is the recording of the transfer, so there are no errors and if the blockchain is encrypted and unchangeable there are no opportunities for humans to deceive or make mistakes in the ledger.

@shortsegments

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