WCP: Money, Gold and Bitcoin

Money is a tool for facilitating the exchange of value (Trading). It is the medium through which we more easily calculate “exchange ratios” than in a barter system. Money in an economy is a dependable, universal measurement tools like seconds and inches, ounces, etc.  Money is a tool to help us negotiate and execute trades more quickly. So, money is a time/energy saver and a store of time/energy. Also, Time/Energy can be/is exchanged for Money.[1]

Money is a medium through which economic actors communicate their preferences (see “money is information”) which drives human action. For example, by choosing to buy a car and sell your house the economy responds dynamically by making more cars and fewer houses. (All behavior is economic behavior).

Money arises naturally in any trading society.  It is simply, “the most tradeable thing” (meta-barterable) in any trading society (economy).

[1] Employers buy time and energy with money and Employees sell time and energy for money.