Bitcoin Course | Big Picture Basics 6.1 – Bitcoin As Money pt2

Video Transcript:

[Music] one of the things that disrupts our money the most is technology we used things such as salt because they were valuable to everybody would if someone developed a technology that allowed you to Produce Salt in a much more effective way and that’s where we used things such as gold and metal money because they were scarce and so technology couldn’t disrupt the production process of finding as much gold as possible but that also brings us into the next form of money as as much as gold is a really good money and has been for thousands of years the one thing it can’t do is move around really quickly and so what we did as humans was put gold in a vault trust somebody to look after it and we were issued a voucher or a token something of a piece of paper to reference that gold that the value of that paper was not the value itself but that we could go and collect gold with that piece of paper and that’s where the next issue of money comes which is trust that how do you know that your piece of paper can redeem something and that’s where our paper money evolved from is we are all using pieces of paper that should redeem something of value underneath but in the ‘ 70s that changed gold was removed from the money system and now we’re just trading coupons cinema tickets without Cinema even existing and that’s where the next issue becomes with in a central system such as a bank they have one copy off this big transaction list of who owns what in Bitcoin system it’s a centralized Network where everyone has a copy of the same transactions and we can work things backwards what is the intrinsic value of Bitcoin its electricity can you think of anything more important to the 21st century to every human on this planet than electricity and the production of Bitcoin is it scarce yes it’s in fixed Supply and so Bitcoin has taken all of the history of money picked the best parts and is designed around to serve and the more we design technology to produce Bitcoin in a better way is more innovation of our energy and the more we innovate with energy the more prosperous we are with Society but Bitcoin as money itself still pertains to be part of our financial system how does loans work how does lending work how does all sorts of asset purchasing such as property work that’s what we’ll discuss [Music] next