Lesson 2: Money is Not Created Equal

Preview

Now that we understand the characteristics of money, it is worth spending a little time comparing different forms of money. The point here is not to recommend one over the other, but rather to illustrate that different forms of money have different characteristics, and those characteristics result in certain benefits and drawbacks of one form of money compared to another.

In this way, as we proceed through later lessons, we can have in our mind some of the benefits and drawbacks of various forms of money, and recognize that not all forms of money are created equal.

Bitcoin vs. Gold vs. Fiat

Key Takeaways

• Every form of money has different strengths and weaknesses when measured against the characteristics of money we discussed in the previous lesson.
• To understand money, we must understand history and politics to some degree.
• One critically important characteristic of money that was discussed was scarcity, and it’s relationship to inflation.

Additional Resources

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