08-20-2021, 03:57 PM
The death of a 'currency' is nothing new.
Many currencies has been born and died throughout history.
Roman currencies, Chinese currencies, or even Pre Columbian Meso American currency which uses bird's feather as it's token instead of gold, paper or 'digital form'.
Study the lifecycle of currencies and one can gain better understanding of 'what it is' and 'how and why' it will die.
Or even study the 'death' of Venezuelan currency (bolivars) which just happened in recent years.
And definitely one day, US Dollar, Great Britain Pound or Euro will also meet it's similar fate.
One will arrived at a conclusion that currency (in any form) is actually neutral (not good or bad) and has no value.
It's the people who 'believed in the value', the believe is based on trust that other people also believe that it has value.
Let's take an example:
Imagine you're in Altay, a small city in the far flung region in Xinjiang, China.
You have $100 bill in your wallet and you saw an ice cream seller and want to buy an ice cream.
The ice cream seller will not give away his ice cream to you in exchange for your $100.
The reason being the seller do not believe that your $100 has value, and so does many other people in Altay.
You might also persuade him to accept your bitcoin, you offered him 1 bitcoin in exchange for the ice cream.
And definitely the seller will reject your bitcoin too.
You then asked the seller what is the price of his ice cream?
In which he answered with 5 RMB.
You might then try to explain that your $100 can be exchanged with RMB and it's 'worth' far higher than 5 RMB and so does your 1 bitcoin.
But the seller won't budge, as he doesn't believe in the value of USD or bitcoin, he only believe in the value of RMB.
So you went and try to find a money changer, and exchange your $100 with RMB.
You then went back to the ice cream seller and exchange your RMB with his ice cream.
Kaching... value is created, you now can enjoy the ice cream.
Kaching.... another value is created, as the ice cream seller is now happy that he managed to sell his ice cream.
And since you love the ice cream very much you gave him a tip, you give him 10 RMB instead of the 5 RMB that he asked for.
Kaching... another value is created, as the ice cream seller is now more happy with you because you give him more than what he has expected.
It's not how much money / currency that you have which matters, it's how you earn it and how you spent it that matters. The value of the currency happened if and only if it was being exchanged with something that provide real value, and every parties involved in the exchange felt happy with it.
Just realize this.. and one will be able to 'escape' from the money chasing / hoarding mentality trap.
Money / currency is neither good or bad, it's how you earn and use it that will makes it either good or bad.
Many currencies has been born and died throughout history.
Roman currencies, Chinese currencies, or even Pre Columbian Meso American currency which uses bird's feather as it's token instead of gold, paper or 'digital form'.
Study the lifecycle of currencies and one can gain better understanding of 'what it is' and 'how and why' it will die.
Or even study the 'death' of Venezuelan currency (bolivars) which just happened in recent years.
And definitely one day, US Dollar, Great Britain Pound or Euro will also meet it's similar fate.
One will arrived at a conclusion that currency (in any form) is actually neutral (not good or bad) and has no value.
It's the people who 'believed in the value', the believe is based on trust that other people also believe that it has value.
Let's take an example:
Imagine you're in Altay, a small city in the far flung region in Xinjiang, China.
You have $100 bill in your wallet and you saw an ice cream seller and want to buy an ice cream.
The ice cream seller will not give away his ice cream to you in exchange for your $100.
The reason being the seller do not believe that your $100 has value, and so does many other people in Altay.
You might also persuade him to accept your bitcoin, you offered him 1 bitcoin in exchange for the ice cream.
And definitely the seller will reject your bitcoin too.
You then asked the seller what is the price of his ice cream?
In which he answered with 5 RMB.
You might then try to explain that your $100 can be exchanged with RMB and it's 'worth' far higher than 5 RMB and so does your 1 bitcoin.
But the seller won't budge, as he doesn't believe in the value of USD or bitcoin, he only believe in the value of RMB.
So you went and try to find a money changer, and exchange your $100 with RMB.
You then went back to the ice cream seller and exchange your RMB with his ice cream.
Kaching... value is created, you now can enjoy the ice cream.
Kaching.... another value is created, as the ice cream seller is now happy that he managed to sell his ice cream.
And since you love the ice cream very much you gave him a tip, you give him 10 RMB instead of the 5 RMB that he asked for.
Kaching... another value is created, as the ice cream seller is now more happy with you because you give him more than what he has expected.
It's not how much money / currency that you have which matters, it's how you earn it and how you spent it that matters. The value of the currency happened if and only if it was being exchanged with something that provide real value, and every parties involved in the exchange felt happy with it.
Just realize this.. and one will be able to 'escape' from the money chasing / hoarding mentality trap.
Money / currency is neither good or bad, it's how you earn and use it that will makes it either good or bad.
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