What is a currency

What is a currency? What is bitcoin?
Source of image: WSJ

Screenshot 2017-07-02 09.36.18

Whenever people think of these alt coin currencies it seems the price of the currency (speculative value) is the thing that actually matters.

That is actually wrong. The most useful thing for a currency to be first and foremost is a medium of exchange. Bitcoin fails that test. It doesn’t mean it has no speculative value. But when there are transaction limits and apparently now, onerous transaction cost, that due to its high price is no approximately $5 per transaction, something is evidently broken, at least as a transaction medium. Keep in mind again, that $5 dollars in a nanosecond is just $2.50 cents from the US hourly minimum wage. The World got off the gold standard not because the metal didn’t have commodity value, but because the so called output of the economy was being constrained by its limited metal supply, which was its virtue to begin with. Bitcoins (virtual currency) rise obviously is typical of bubbles, which can always be rationalized, for many people, for instance who are “underbanked”  and so forth but when the question becomes what is its purpose, then the question of just what is money gets asked.

Anyhow, any relevance to Tesla one might ask?

Tesla is a company that seems better at converting one currency into another. It is a finance company created by the financial industry to extra transaction rent. But money has no value per say it is just a medium of exchange. When the question turns to the more relevant function it serves as a car maker , the fraud is exposed. Buying a car is actually just one form of transportation. One of the least efficient modes at that since bicycling and mass transit are better options. But don’t tell that to the Earth savers and coin flippers on Wall Street or at Morgan Stanley since they plan to make quite a bit more mints on the stock frenzy since the company has never made a dime doing what its commodity value in the economy actually is.

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