Currency vs Money: of Fiat, Gold/Silver, and Bitcoin

Store of value, medium of exchange, unit of account: these are traditionally the functions of money. However, one of these functions is more important than others: STORE OF VALUE

Money MUST be scarce. Its the one key thing about money: everything else is frosting to the cake (unit of account, medium of exchange etc etc). Scarcity allows money to retain, and even increase, its value over time

Your work, labor, sacrifice is not infinite. Thus money must represent this, or you are getting robbed: allow me to elaborate more:

Modern econ and finance made us forget the importance of scarcity in money. These two disciplines nowadays exist to prove the Earth (USD) is the centre of the universe. That storing value is passe and unimportant. Consumption beyond ones means is good, thus inflation is good, and saving money is a sin.

Fiat does medium of exchange well, if you are lucky enough to be banked (as a unit of account fiat is being compromised by inflation, and always has been by shadow inflation, but thats a different story)

Fiat would do ok as money, if not for that pesky key function: hold its value. This point is non debatable, and why the USD is constitutionally supposed to be backed by a set amount of precious metals https://deanclancy.com/the-constitutions-seven-money-clauses/

The founding fathers were not stupid. They studied history, especially Roman history, and saw that sound money was the foundation of democracy.

Without store of value, what you get at best is currency. Cigarettes were used as currency, sea shells, pokemon cards etc Are you obtuse enough to need explanation why cigarettes are a bad form of money, though they can function ok as currency?

If the USD/fiat regime really isnt money, why isnt the price of gold much higher? Gold is far more scarce than fiat, right?

This is where things get diabolical: to obfuscate the truth of the depreciation of fiat, governments worldwide colluded to manipulate gold, through the creation of Futures markets, while also confiscating gold from their citizens and then selling it at strategic moments.

Gold is supposed to be the Sun, before bitcoin came around: a measure of the true value (or lack thereof) of fiat. So what governments did is they created paper gold, through the futures market, to inflate away the value of gold. Banks were happy to execute these trades, to front run them and make easy profits.

Imagine you knew gold was about to get dumped big time: you would open your own short position before executing the government’s sell order.

There is a literal website with proof of this, it is NOT conspiracy theory: https://www.gata.org

Commodity manipulation is an institution of modern finance.

Gold fails because its not feasible to audit the reserves of gold a government has. Thus futures market can be used to naked short sell gold (sell gold without actually owning it), create paper contracts claiming gold ownership, without actually having to own physical gold.

Why cant we have audits? Gov can just temporarily buy enough for the audit, have some real gold and the rest be shiny crap metal etc etc. Bitcoin, through the open blockchain on the other hand, can have its supply verified at any moment by anyone.

The consequence is that without a measure tool, it seems as if currencies are stable BUT ONLY RELATIVE TO EACH OTHER. All fiat currencies are going down together:

https://cdn.knoema.com/infographics/Knoema_Data_Driven_Gold_and_Fiat_Money.png

Notice how even with gold manipulation, currencies are tanking relative to gold. But if you only follow fiat currency conversion rates(USD/EUR, CAD/USD etc), fiat seem to be doing ok: last decade USD was stronger, next one probably the renmbi/yuan, Euro was strong at its inception, now its weakening etc.

For the sake of brevity, I won’t even start to describe the games central banks play to manipulate their currency vs others.

The important thing is to understand fiat is currency, gold/silver should be money but governments figured out how to dull that threat, and bitcoin fixes this by design.

Similar to gold, you can manipulate for a time the fiat value of bitcoin, but that pesky open blockchain allows any peasant to verify supply, and thus its scarcity.

Its time we understood the difference between money and currency, for own sake as sovereign individuals.

TLDR: money must be scarce, fiat is not. You dont own any money, only currency, unless you own physical gold/silver or better, bitcoin. Fiat is unconstitutional, gold is manipulated to hide the fall of fiat, fiat seems to be doing fine only relative to other fiat. Buy bitcoin to hold money that cant be manipulated, fiat value of bitcoin can be of course, but its not bitcoin itself being manipulated

Edit: spelling mistakes, sentences that needed better phrasing etc

submitted by /u/Independent-Space-23
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