A couple of centuries ago money was not so important. A horse was more important, a land, a sword, etc.. all real things. And of course society. Money is originated in society.
Money is a product of society evolution. It works because people agree. Some kind of social agreement. Money is a social technology. Any technology needs to be upgraded and even reinvented.
Ideal money doesn’t exist. Any money is a kind of Ponzi scheme when some early holders get benefits from those who get in later. But is it possible to fix this? Let’s dive in.
What’s a difference between gold and fiat? Gold can be mined by anyone, fiat is only government minted.
What’s a difference between fiat and bitcoin? Bitcoin emission is defined by protocol and distributed among miners and hodlers. It was a good idea to buy or mine bitcoin ten years ago.
You can reinvent your own money thanks to internet, cryptography and blockchain technologies. But how to avoid to be a Ponzi scheme or scam? It’s obvious that to get new users for your money you should provide some benefits for early adopters. Early adopters get benefits (Ponzi test failed).
Central bank digital currency — CBDC is a fiat money in digital form mined and managed only by government.
There is no conflict between fiat/CBDC and money or any digital assets (NFT for example) created by users. It can coexists. Money is a product. Let the market decide what products exist, scam assets shouldn’t have users.
Money needs to be reinvented, ’cause of progress and evolution.
Application specific money (programmable digital assets) is more efficient in specific application than system money (fiat/CBDC). This programmability is a key. Technologically, this is done using blockchain/smartcontracts and cryptographic protocols.
Money as a product/protocol should solve users problem more efficient than competitors, any rules can be applied (mint/burn/exchange/etc.)
Money is an application (dapp) programmed and focused on specific problem. It existed for centuries, tickets for example, coupons, game assets, etc.
