The document discusses the history and evolution of money, including barter systems, commodity money, representative money, and fiat money. It then covers the functions of money as a medium of exchange, unit of account, and store of value. The document also discusses different forms of money like cash and digital/ledger money. It raises questions about assigning value to digital representations and the problems of the double spending problem. It presents centralized systems like PayPal and decentralized systems like Bitcoin as potential solutions for digital value and the tradeoffs of each approach.

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History of Money
@henkvancann
Origineel: Bas Wisselink - @DamelonBCWS

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History of Money
Blockchains, feit en fictie
@henkvancann
Origineel: Bas Wisselink - @DamelonBCWS

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Functions of Money
$ $
$
Medium of
Exchange
Unit of
Account
Store of
Value

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Barter (ruilhandel)
Cattle were considered more
valuable than sheep or pigs
One calf was worth two sheep

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Commodity Money

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Representative Money

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Fiat Money

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Forms of Money
Forms of Money
Ledger Money
(Paper or Digital)
$
Cash

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Money supply: Euros 2008-2018

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Why stop there?
What is value?
Contracts
Private information (address, likes etc)
Goods and commodities
Codes
ETC…

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Problems with Digital Value?
Who Proves:
That it is real and not counterfeit?
That it hasn’t been spent before and
therefore is mine?

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Solutions for Digital Value
Pros:
1. Easy solution to “double spending problem”
2. Known form of contract
Cons:
1. Single point of Failure
2. Corruption possible (ledger tampering)
Centralised Systems:
Ecash, Paypal, Apple Pay etc.

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Solutions for Digital Value
Pros:
1. Many checks and balances in the system
2. No top-down structure
Cons:
1. Responsibility reverts to the user (usability)
2. Counter-intuitive and this hard to understand (at first)
Decentralised Systems:
Bitcoin and all true blockchains

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Steal me…

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Thank You