- Social & Economic Consensus.
- Represented by Central Bank Liabilities & Commercial Bank Deposits.
- Relies upon System of Ledgers Integrated into a Fractional Banking System.
- Accepted for Taxes.
- Notes & Coins are legal tenders for all debts public & private.
- Unique tax treatment
The Role of Money
- Medium of exchange
- Store of Value
- Unit of Account
Characteristics of money
Why Early Cryptographic Digital Currencies Failed?
- Rely on some form of central authority.
- Not enough adoption.
- Couldn’t solve the double-spend problem.
- Merchant adoption
- Double spending
Main riddle is “How to move value peer-to-peer without any trusted central intermediary“