EP 13: [3-Step Process] How Money has Value

You've probably heard enough about the whole argument of "money used to be gold". In this episode, we will uncover the fundamentals of how money accrues value from 2 perspectives — metallism and chartalism.

There are plenty of research and papers talking about the justification of value. From Bretton Woods to equation of exchange explanations, this episode will take a more fundamental view of money. That means going back in time to history. After all, economics design is about understanding the basic fundamentals of an economy so we can build upon them.

Quick navigation:
- How money is created (Metallism vs Chartallism) 01:34
- 3-step process to legitimising money 10:20
- Application to cryptocurrency 12:30

If you are keen to learn more, we are currently having a discount for the Token Economics Blueprint course! It's a 10 lesson session and you can choose which section you are interested in. Total lesson time: 15 hours.

*Disclaimer*
This is not financial advice. Information shared is found publicly on the internet. All analysis and opinions are my own. The purpose of sharing the information is for education and knowledge sharing. The information shared is accurate at time of recording. Purchasing cryptocurrencies poses considerable risk of loss. Past performance does not indicate future results.

[benkurt]

Maybe the Metalist view on BTC would be just the price of electricity as in FIAT money lets say nickel or gold?

[EconomicsDesign]

I want to emphasis on my point with regards to Chartallist money, and the view of modern credit banking, using the words of Hayek, in his proposal for The Denationalisation of MOney (1976).

Mainly, "modem credit banking as it has developed requires some public institutions such as the central banks. There seems to be *no reason whatever why the state should ever prohibit the use of other kinds of media of exchange*, be it some commodity or money issued by another agency, domestic or foreign.".