Cryptocurrency is a fad

Cryptocurrency is a fad

The same was true about paper money at one point. (Actually, if you want to get into chatting about fiat money, many think it still is.)

What is the tipping point that brings the agreement needed to make money legit?

Back in the day, a coin was a piece of metal a person could carry. It had value in the metal content. (Of course, they use less valuable materials now.) It became a unit of exchange. Coins have a limited quantity available, and can be scarce.

I believe the U.S. Mint began minting quarters with different backs to encourage hording. (Collecting, they call it.) It is a way of keeping the money supply expanding while creating scarcity. Then they started doing the same with nickels and pennies. It really is a marketing scam.

Enter Cryptocurrency – it exists only in cyberspace. Yet, people are flocking to it. Again, it is simply an agreed upon unit of exchange, right?

How exactly does cryptocurrency work? What is the datachain that defines it? Why is it based on computing power? How does mining cryptocurrency work? How do you know which one to use? Inquiring minds want to know!

Is it possible to quantify work in the form of a cryptocurrency? If work is adding value to life, should it not be rewarded? Is this not the reason money came to be?

After all, money is simply an agreement of value. What happens when people disagree? This might be a valuable lesson to share.

Yes, I am simply sharing my own questions. Thinking out loud, so to speak. If I learn anything of value, I will share it.

Queue up Pink Floyd’s “Money!”

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