What Is Money Really? What Are It's Features? How Does The Government Force It's Use For Tax?
bitcoin·@crypto-tracker·
0.000 HBDWhat Is Money Really? What Are It's Features? How Does The Government Force It's Use For Tax?
<html> <p>https://www.youtube.com/watch?v=-WpQdIgDUPg</p> <p> his is a free sample lesson from 'How To Confidently Join The Digital Money Revolution - Master the basics of Bitcoin and own a stake in the future of money'.<br> </p> <p>What Is Money Really?<br> Digital Money Revolution <br> </p> <p>Bitcoin is...<br> An open source software protocol which enables a blockchain to be built on a trustless peer to peer decentralised network via the Internet, which can be used to host a public database which tracks changes in ownership of assets and is secured by cryptography and consensus.<br> A bitcoin is...<br> A unit of digital currency that exists on the Bitcoin blockchain, is stored in a wallet and can be used to track the exchange of value in a free market economy.<br> Digital Money Revolution - What Is Money Really?<br> </p> <p>Bitcoin Is A Crypto-Currency<br> We have explored the crypto part in the lesson on encryption<br> So a logically a crypto-currency must be a currency that is encrypted<br> Only the owner of each bit has the key to unlock it<br> Digital Money Revolution - What Is Money Really?<br> </p> <p>Bitcoin Is Also A Digital Currency<br> The thing about making something digital is it immediately makes it easy to copy (piracy)<br> Think of the disruption because of digital music<br> All digital goods have this problem<br> Can I just copy my Bitcoins and make myself an instant millionaire?<br> No, because there has to been consensus on the network about how much is in each Bitcoin wallet<br> That’s determined by all the transactions made to you since Bitcoin began<br> Digital Money Revolution - What Is Money Really?<br> </p> <p>At The Most Basic Level Currency Is...<br> The thing we use to buy stuff<br> If that’s true, can’t I use air as money?<br> No? Why not?<br> Because it’s to easy to get hold of on your own<br> Because no one else will accept air as payment<br> Digital Money Revolution - What Is Money Really?<br> VERY IMPORTANT POINT<br> Money is whatever someone is willing to accept as payment<br> </p> <p>So Are These Money?<br> American Dollars?<br> British Pounds?<br> European Euros?<br> Japanese Yen?<br> Indian Rupees?<br> Digital Money Revolution - What Is Money Really?<br> YES AND NO<br> In one country<br> In another country<br> </p> <p>Why Do Those Countries Accept It?<br> I mentioned that money has value because we can spend it<br> In any given country, where is the ultimate place money is spent?<br> The place you have no choice over?<br> Digital Money Revolution - What Is Money Really?<br> The Government<br> Taxes<br> </p> <p>Could I Accept $ As Payment?<br> As a British citizen yes I could<br> But I’d have to convert to £ to pay taxes<br> Or to spend with anyone else in the UK<br> I’d also have to tell the government how much I’d earned in $<br> So they could charge me the right amount of tax on my earnings<br> Digital Money Revolution - What Is Money Really?<br> </p> <p>How Does A Government Decide What To Use As Money?<br> What can we use that is:<br> Portable<br> Durable<br> Recognizable<br> Fungible<br> Scarce <br> </p> <p>This is why we can’t use air, it fails the test.<br> Digital Money Revolution - What Is Money Really?<br> </p> <p>Summary<br> Digital Money Revolution - What Is Money Really?<br> Money is whatever someone is willing to accept as payment<br> The more people accept it as payment, the stronger the currency is<br> It boils down to people who use the currency having confidence in it (trust)<br> The five characteristics make sure people trust that it will last and be spendable<br> The government in each country typically sets the laws on what can be used as currency (and they collect taxes in that currency) </p> </html>