The definition of money has changed. The reason that the government prints so much money but so little effectiveness to help the entire economy tells you that the money that is printed has so little definition of what it is intended to spend. Or in the other words, those printed have been wasted and end up in the pocket of the rich again.
Money in the traditional sense
When you hear about money, you feel that you can use it to exchange for anything. That is still the case. However, the power of purchase has decreased year by year. Have you ever wonder why that is the case?
Purchasing power decreases
Economists will argue that purchasing power decreases because of the rise of inflation. The central bank purposely set 2% as the target inflation rate to artificially inflate the economy.
Definition of money becomes more specific years by years
What really happens is our knowledge of money has become more and more specific year by year. With the support of technology and complex social evolution, the power of money shrinks because we realize that our money cannot buy everything and it is getting harder for society to progress.
Knowledge is money
In the past, knowledge is money. Thinking about the book you read, you want to gain knowledge so that you pay the price for it. You want to use a computer, you need to pay and own one to gain access.
Information is money
Since the internet booms, information replaces knowledge and becomes money. Data that stores critical information is the most valuable.
Money is a medium of exchange
Money is a middle man. It is a medium of exchange between any type of trade. Whether you want knowledge or information, you need to use a medium of exchange to receive it.
Money becomes ineffective due to oversupply
Money becomes more and more ineffective because there is more money circulating in the system. Knowledge and information supply are fixed but the money supply increases multiple times.
The money we used is only to delay of debts due
The government prints more money just to delay the national debts. We need to pay debts off but we do not have a specific due date to pay off as long as we have enough money to pay off.
The world borrowed too much money
The world has so many debts that they are out of control. There would be no way to pay off debts but print more money to pay off.
Everyone knew we were doomed but we do not know when
There is an end day as we all knew it will come. However, no one knows when it will come. One day, governments will go bankrupt and print more money will no longer work. We just don’t know when the day will come.
Cryptocurrency redefine the money
Cryptocurrency clarifies money and categorizes its functions and features. Bitcoin is inflation resistant because of its capped supply at 21 million. Ethereum is internet money that creates an internet blockchain system that people can utilize tokens in smart contract transactions with specific tasks.
Cryptocurrency can pay off debts
As cryptocurrency becomes more valuable, it may use to pay off debts or extend debts due day by creating liquidity.
In conclusion
Cryptocurrency refined the money and the world is slowly adapting to the change. One day, the government will stop printing money because it will no longer work. We may need a solution and cryptocurrency can be the one to rescue.