The sudden rise in popularity when it comes to cryptocurrencies has left a lot of people wondering about what money is. There are many answers to the question, but there is nothing that can satisfyingly explain it so that everyone can agree upon it.
The modern description for it is that money is a medium that we use to express value across space and time. Left alone, that statement doesn’t mean anything. It’s better to look at it historically and to think of this medium of exchange as a technology. Click here to read more.
When the free market was established, society started to progress a lot faster. The free market is always able to select what the best tool for a specific job is going to be. Let’s say that you want to dig a hole. You can buy thousands of different tools, but the shovel is going to be the best solution to the problem.
Billions of people have used it, and it’s never going to be outperformed by anything else. It’s also much more effective than using your hands. With all those things taken into consideration, all the users of the market decide that a shovel has value, and this value is represented in its price.
How does central banking come into play?
As we mentioned above, the free market is the best thing that we have that can determine what tool is the best for a specific job. However, as a species, we haven’t allowed that to happen with money. It doesn’t matter where anyone is in the world.
If they want to dig a hole, they’re going to use a shovel. Well, if that’s the case for everything, the entire world should be using the same currency. That could be the Euro, the dollar, or the rupee. The entire world used to work in the same currency, which was gold. There were a couple of reasons for that, and there are some that every currency that gets invented needs to fulfill.
The first thing is the ability to be divisible. The second thing is to be durable. The third thing is to be recognizable by everyone that uses it. Fourth comes portability, which means that it can be transferred from one place to another.
Finally comes scarcity, which means that no one can produce more of it, which isn’t the case today. When we take all of these properties into an equation, precious metals fulfill all of them. Out of all precious metals, which include silver, platinum, palladium, and gold, the last one was the scarcest.
People during history didn’t know that platinum would be rarer, and the yellow metal was shining brighter than the other ones. That’s what made it recognizable. When it comes to scarcity, the first thing we need to have in mind is that demand should always outstrip the supply.
The cool thing about money is that we can never have enough of it. We always want more. There’s never enough money for everyone, apart from in a communist utopia, and history has proved that it didn’t work even then. Now, let’s look at something that makes sense, but the system has made it normal.
Everyone wants the money they use to be inflation-resistant. You want the dollars you have now to be worth the same or more in the future. Inflation is essentially theft since you don’t have the same buying power the following year. It always increases, and we can see that best by comparing the groceries that you could buy a couple of years ago and the groceries that you can buy today with a hundred bucks.
Now let’s look at inflation again. The circulation of money has always been controlled by a central body. This means that the government and central banks can see the line where supply and demand are crossing. However, there is always the motivation to raise the supply line a little bit higher so they can steal a bit of purchasing power from the people they’re governing.
The incentive to do this has always happened, and it will always happen into the future if people don’t turn to Bitcoin and other cryptocurrencies. If we were to put cryptocurrencies into the mix in free-market economics, they would always come out victorious. With time, that’s going to happen. The important thing for everyone is to research and support the projects that will be leaders in the future.
How is that connected to PKT Cash?
Money is not the only thing that has been centralized. Bitcoin is the solution when it comes to having a worldwide currency that no one can penetrate. Another thing that people use daily is the internet.
Internet service providers are a centralized crew that sets their own prices and decide who gets more bandwidth. Now, as we all know, the best way to fight fire is with more fire. That’s what PKT Cash is trying to do. It’s a project that borrows bandwidth that’s not used at the moment to ensure a better tomorrow where the entire regulation of the web is going to be decentralized.
Everything in the world becomes better when it gets decentralized because everyone decides what’s going to happen next. The blockchain doesn’t allow any malleability and malevolent behavior, and that’s where being a pktcash partner pokes at the centralized way of governance. It’s a win-win scenario.
Almost all people are dissatisfied with the way their government works, except for Switzerland. That’s because their government is almost completely decentralized, and people are choosing what they want on a local level. The roadmap is set, and slowly but surely, every country is going to follow the Scandinavian example.
PKT Cash is trying to change the world of the internet by implementing a proof of work coin that is going to get mined from the bandwidth that’s currently going to waste. Reusing it will give rise to a new community that won’t be censored, and the information won’t be selectively distributed.