There are various names for types of money and at first they can be quite confusing. So here is a handy guide on what they are and which is in your favour.
To help you understand which monetary system is in your benefit, we have this scale. All the way on the left is you and all the way on the right is the government.
To help you understand which monetary system is in your benefit, we have this scale. All the way on the left is you and all the way on the right is the government.
You are great and will act in your interest, where as the government is bad and is actively working against you.
We’ll plot each monetary system on this chart in a second, so let's get to the types of money we have.
We’ll plot each monetary system on this chart in a second, so let's get to the types of money we have.
There are three types of monetary system and each can be split into having a physical and non physical branch.
Let’s start with the worst - fiat money. Fiat money is fake money that is backed by nothing more than violence from the state.
Let’s start with the worst - fiat money. Fiat money is fake money that is backed by nothing more than violence from the state.
In physical form fiat money is the copper, silver and gold coloured coins you have in your pocket, that you would exchange for goods at the shop.
In non physical form it’s having your wages digitally paid into your bank, so you can buy a product from another country, for example a video game called Outer Frontier.
In non physical form it’s having your wages digitally paid into your bank, so you can buy a product from another country, for example a video game called Outer Frontier.
Speaking of which did you know you can exchange your fiat money for video games? Mental I know, maybe you should go do that now.
Next we have commodity money, by far the superior option for a monetary system. A commodity is just another word for a valuable or useful thing, for example water or copper. In fact the fake money mentioned a second a go, mimics this real money, which actually was copper, silver and solid gold coins.
In physical form commodity money is you exchanging various weights of copper, silver or gold for the things you want.
In non physical form, commodity money doesn’t currently exist, but I have made a short video about it for channel members. I can’t stress this enough though, crypto currencies are not a digital commodity, no matter what snake oil salesmen say.
In non physical form, commodity money doesn’t currently exist, but I have made a short video about it for channel members. I can’t stress this enough though, crypto currencies are not a digital commodity, no matter what snake oil salesmen say.
Our third money system and easily the name you are going to forget is fiduciary. Fiduciary money is based on trust and is a precursor to fiat money. It is not a commodity or violence backed like fiat money.
In physical form fiduciary money is you buying an item you want with a note from a trusted bank. The note declares that the bank will exchange this note for the sum of money they hold. The shop keeper can take the note for now and turn up at the bank later where they will promptly hand him the real money.
In non physical form fiduciary money is you buying something with a credit card abroad and the shop keeper trusting that the international bank will honour the amount owed.
In non physical form fiduciary money is you buying something with a credit card abroad and the shop keeper trusting that the international bank will honour the amount owed.
Let’s quickly recap the three types of monetary system.
Fiat money which is fake money backed by government violence. Commodity money which is backed by the money actually carrying a value. And fiduciary money which is backed by trust.
Fiat money which is fake money backed by government violence. Commodity money which is backed by the money actually carrying a value. And fiduciary money which is backed by trust.
So back to our chart earlier and we have fiat money being good for the government but bad for you. Then we have commodity money, which is firmly on your side. And the most difficult to place being fiduciary money, as it can flit to either side of the scale depending on who controls the backer of the fiduciary money. You, the government or a half way third party.
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Join https://www.youtube.com/channel/UCqnFXhrGURvehHLvTJF-lTQ/join
Donate https://www.roley.co.uk/store.html
Get The Money Pit https://amzn.to/3byhIHr
DISCLAIMER: Some of these links are affiliates, which means if you click through the link and make a purchase, I'll receive a tiny commission. This doesn't affect you as the customer or the price of the product.
By Roley
13/01/2021
13/01/2021