Posted tagged ‘Medium of exchange’

Bitcoin = The Unstoppable Ingenuity Of Individuals

July 30, 2013

Bitcoin Accepted Here [by freeborn]

Bitcoin Accepted Here [by freeborn] (Photo credit: Adam Crowe)

We have talked about the Bitcoin phenomenon a couple of times here. I have said in this post, Let’s Take A Look At Bit Coin, “The reason I like the discussion about bitcoin: it is an opportunity to get people to think about what money is, how it evolved through the barter system, what is a gold standard, what is paper money, why the Federal Reserve‚Äôs monopoly on printing money is a bad thing, and could bitcoin (or some other not yet thought of idea) evolve into the medium of exchange not controlled by Government?” I would like to add that another reason I like bitcoin is because it represents the spirit of 1776. It’s the unstoppable dynamism that occurs when individuals use their inventiveness, curiosity, and thirst for freedom to get around Government planners plans. The free market is an unstoppable force (more…)

Does The Supply Of Money Have To Increase To Accommodate Increasing Production?

April 29, 2013
Monopoly Money

Monopoly Money (Photo credit: John-Morgan)

QUESTIONS CONCERNING MONEY.

I’ve had some questions recently that have to be addressed. 1) If production increases without a corresponding increase of money, would that not cause deflation? 2) If the currency is to be increased to correspond with the increase in production, how is it increased without theft? The simple answers to these two questions are yes to the first one, and, it can’t, to the second one, but that doesn’t help us understand the why’s and how’s.

UNDERSTANDING MONEY.

I wrote a post titled, “We’re All Born In The Middle Of The Story”, in which I quote Thomas Sowell who said, “results observed at a given point in time may be part of a process that stretches far back in time“. Understanding this quote should be our default position for everything we observe and analyze. When it comes to money we are all born in the middle of the story. What do I mean by that? (more…)