When BitCoin Goes Bust

*If you were thinking and breathing in 2017/18 you probably heard of BitCoin**. The illusive cryptocurrency is shrouded in mystery for any number of lay people, but with a whispering promise of a future paved in gold for anyone who invests. Not quite. BitCoin is at its core just another form of money. Let’s talk about money for a moment.

There are three types of money, each embodying another form of exchange. The first and least common in today’s world is commodity money. This means money that has inherent value. Commodities like tea, salt, and tobacco are the most famous of the commodity monies. This basically represents a barter economy where you trade goods with a value for other goods with a value. However, this is not very effective in the long term. There are two functions of money that are not met with commodity money, the measure of value and the store of value. 

Continue reading “When BitCoin Goes Bust”