1. My Story in the World of Currency Marketing
2. Critical Appreciation in Terms of International Political Economy
3. Five Important Dichotomies
1.
Back in the 80s/90s, when I was around 7 years old, I also issued my own currency. Tech at that time was not very developed, so I just wrote numbers, on orange manila hemp paper. I airdropped the money to my siblings (pitiful for them), and the orange money economy began. The value of the orange money collapsed not long after that, and the economy disappeared, due to the ingenuity of my siblings who mastered the concept of unlimited money supply controlled by radikyat.
For the next 30 years, I did not dare to invest in crypto assets before government regulators issued a strong policy on their use ... so I waited until various parties had caused a huge disaster, and finally after FTX collapsed, only then did I begin studying the crypto asset sector. This is based on the understanding that at any time, any nation that has the weapons to enforce its sovereignty, can ban the use of any foreign currency, including any crypto asset, in its territory in the blink of an eye.
Currently, I consider crypto assets to be an alternative asset class whose principles have not yet been firmly established by any nation. If the government determines that citizens can invest, invest ... with the warning that one day there is also a possibility that it can be banned.
2.
Summary of the current situation in international political economy / EPA / IPE: national currencies are agreements, that is, international tools that enable trade and the transfer of power between certain parties, to protect the security of that party. From this point of view, currency tools can be weaponized by their parties.
However, every nation in the world has not yet banned non-sovereign / non-national currencies, because the presence of non-sovereign currencies can weaken the economic administration of every other sovereign nation. This is called a strategy of mutually assured weakness. Crypto assets are weapons of mass weakness. This is the pattern of governance.
If the entire world could be federated under one government, then the use of crypto currency tools/weapons would disappear, and their value would decline. But we do not expect this to happen in the near future.
3.
**Currencies** can be classified in detail. The following dichotomies are separate, and do not overlap with each other:
- ... First Dichotomy: there are 'national / sovereign' currencies, and 'non-national / non-sovereign' currencies;
- ... Second Dichotomy: there are 'commodity / intrinsically valuable' currencies, and 'fiat / extrinsically valuable' currencies;
**Transfers** of currencies must also be classified in detail.
- ... Third Dichotomy: 'commodity / intrinsically valuable' currencies can be carried out 'physically', or 'representatively / in accounting notation'; while **all transfers** of 'fiat / extrinsically valuable' currencies are only 'representatively / in accounting notation';
(Although people consider national paper money to be 'physical' currency, paper money is actually 'fiat' currency, based on the understanding that paper money is an accounting symbol with no intrinsic value. )
- ... Fourth Dichotomy: **representative transfers** of currency can be done on any medium, including 'non-electronic medium' (e.g. paper money as a token, or accounting written on paper documents), and also 'electronic medium' (e.g. electronic tokens, or accounting stored electronically).
- .. Fifth Dichotomy: *representative transfers in accounting** can be done on a 'cryptographic ledger', or 'without a cryptographic ledger'... where crypto can actually be done on paper too, although it is not convenient. So when the concept of 'sovereign/national bank digital currency / CBDC' is presented it may not involve crypto.
End of original note.
How Does Currency Work in General?"3. Five Important Dichotomies"Between sharing this, and making my dinner ... it occurred to me that there may be a bit of work to be done here vis-a-vis an analytical philosophy of money, i.e. 'what does it mean, when we say, money? or a 'dollar/unit-of-other currency'?From what I gather from recent conversations, broadly there is an INFLUENTIAL narrative that the value of money lies in its repayment, and so far I have briefly argued that any promise of repayment depends on an IMPLICIT promise of limited supply. In more detail, any REAL repayment is CONTINGENT upon an implicit ASSURANCE of a specific VELOCITY of money supply.After revisiting the five dichotomies I jotted down in the note above, I found that my third and fourth dichotomies lack clarity, and may imply some confusion.Putting these two broad concerns together, it seems there is a need to articulate a Kuhnian paradigm of what money is.But I will only attempt this after dinner. ( It was in the microwave, and now I have to eat it. )
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