What is the Historicity of Money (The Role of Money in History)

08/20/2023 02:10 • AI & Tech Insights • 118 views

What is the historicity of money? In the eyes of economists, what is the historicity of money? Its historical significance lies in its potential impact on current socioeconomic activities, as well as future global financial order and economic systems. The same goes for cryptocurrencies, which are a special economic phenomenon and a highly speculative form of technology, hence being called “digital gold”.

Bitcoin, as a new concept of currency, has been developing for more than 10 years. The development of virtual currencies represented by Bitcoin began in 2009, but it was not until the end of 2013 that the price of Bitcoin reached $10,000. This indicates that many people in the market believe that Bitcoin can replace cash equivalents. However, as the Bitcoin market develops, people are gradually realizing the increasing prospects of blockchain technology and constantly exploring ways to help the public better understand the importance of this emerging entity, making this possibility very high. So why is cryptocurrency considered an inevitable trend in the future development of currency? The answer lies in the significant impacts it can bring to governments around the world. These factors will determine the historicity and value of money. The first factor is that a year ago (2011), when Joe Biden became the US President, the US dollar became one of the world’s main payment tools, making “fiat currency” the largest settlement system in the world. “Paper money” is fundamentally different from legal tender: the first case is convenient to use in recent decades, and the second case is due to the printing of a large amount of hard currency to meet daily needs. Therefore, it can be said that the basic characteristics of money are issued by central banks, meaning that if we exchange money for other currencies, it can be measured. In the third case, in order to achieve this goal, various means need to be employed to enable central banks to collect more money, thereby reducing costs and increasing liquidity. (Note: “Bank for International Settlements”)

The Role of Money in History

According to Cryptoglobe, one of the important roles of money in history is that it is created as a medium of exchange. With the continuous development of technology and the fintech industry, money has begun to play a very important role because the use of these technologies enables it to provide people with a free and secure payment system. However, compared to traditional forms of transactions, this form is still very unstable. Therefore, although many people consider cryptocurrencies as a good means of storage, they do not truly imply that they are real investments or speculative products (although Bitcoin is not currently), and their market share is small (only 1% of the global total).

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What is the Historicity of Money (The Role of Money in History)

The Role of Money in History

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