Crypto In The Long History Of Private Money

In the United States, the government is not the only entity legally allowed to issue money. Private citizens and businesses are allowed to do so, too, and throughout U.S. history, they have done this. This type of money is referred to as private money, and it had mostly disappeared from circulation until Bitcoin was created in 2009. Today more than eight thousand cryptocurrencies exist, and more are appearing every day.

Why were private currencies so popular, and why are they coming back today?

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[geraldw]

It's incredible how you mentioned M-PESA which forms critical part of currency exchange via mobile devices in Kenya. It has integrated very well with the banking sector in the country.

[angusmcfarlane]

In 20 minutes, I learned more about the global, financial 'big picture' than 40 years of reading around. Thanks!

[JohnSmith-pvkj]

I can see why you are a visiting professor. You have a great ability to explain concepts in a way that can be easily understood by someone without a great deal of insight in the topic without sacrificing the complexity or depth of the subject.

[MrTeapots]

I got two ads for "private currency" scams during this excellent video. It's like good and evil fighting for the screen.

[WojciechP]

One of my favorite bits of trivia is that wampum, originally a native invention, had some inherent value because its pretty and the process to produce it was very laborious so it wasn't an infinite supply. This changed when settlers built steel tools and a mechanized process for quickly making loads of it, causing wampum inflation at the expense of the natives.

[yourcheapdate]

My God, what an avalanche of information! This was incredible. History, markets, human psychology, crypto...way to connect it all, just fantastic!

[Kalarandir]

Clear as ever and without all the hype or hate. Thanks Patrick.

[briehart-nutter]

As an Ithacan, I can tell you that the Ithaca Hour's history is a wonderful and interesting story. Lovely to hear my city mentioned in your video. There are several wonderful lessons to be learned from the Ithaca Hour and it's history.

[tonyx]

Fascinating. I wasn't really aware of much of the history of private currencies, so I learned a lot today.

Interesting side-note; in Scotland, where I'm from originally, bank notes are issued by authorised retail banks rather than the government, so you have several different sets of notes in circulation. Technically, these notes aren't actually legal tender, and I guess they are really a form of private currency. However the banks are required by law to hold reserves equivalent to the value of notes they issue, to guarantee their value. So I guess Scottish currency is basically paper stablecoins.

[lfmsimoes]

Some weeks ago I watched a video that explained that "airline miles/rewards" (from Delta/AA/Continental) effectively work as digital private currencies... (much like the railroad operators did before)...
Learned a great deal of history with this video. Thanks Patrick.

[chessdad]

Your mention of the protection provided by the credit card system for is so true. Myself and all my relatives have had to use that protection due to criminals attempting to charge to our credit cards. Great commentary on private currencies.

[hllbaronshow]

So this channel is more like a collection of lectures than just some financial youtube videos. Great

[joeschmoe]

I find it humorous that the top comment thread below this video (aside from the pinned comment) is a conversation taking place between a whole troop of crypto scam-bots.

[codenamed]

I like how you didn't use a click bait title for this video. I really appreciate your focus on meaningful content.

[endersbyd]

Excellent Patrick. Easily one of my top 10 channels on YouTube

[arnetrautmann]

Extremely interesting video. I did not even know how much there is to know. Thank you, Patrick!

[johnathankain]

Private printed money’s history is still easy to see in Scotland and Northern Ireland, though all those notes are backed by government eventually, though not directly.

[ipenguin]

Given all the Cryptos, NFTs, the Rise of the Metaverse, On-Line Sports Betting, and Lotteries is anybody in the US paying their bills?

[michaelmanning]

There's a series of plays collectively known as "The Wingfield Cycle" about Walt Wingfield, a stockbroker who gives up the exchange for a farm. In the third play, "Wingfield's Folly", Walt convinces his neighbours to adopt a new currency, the Walt. He gets an education in practical economics.

[hereigoagain]

Great overview! Patrick can pack a lot of info into an easily digested capsule. One pro is that some crypto seem to be pyramid schemes, so early "investors" make large rewards. Finding the "last fool" may be tough.