Money Vs Currency

LGJLGJ Posts: 58 Bronze ✭✭✭
I'll be honest. I don't understand the difference. Roy in the round table seemed to imply that there is a significant difference. I have always used those two terms synonymously.

How does Goldmoney distinguish between the two?

Money vs Currency
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  • GoldmattersGoldmatters Posts: 3,751 Admin
    edited February 16
    @LGJ Speaking as my personal opinion and interpretation money (gold) has intrinsic value and is a store of wealth. Currency, in James Turks words would be a “money substitute.”

    For example, a gold coin has intristic value because of the time, energy, labor, and information required to produce it. It is rare and in very scarce supply.

    A $100 bill has no intrinsic value whatsoever. It is just a piece of paper and has “value”because we agree that it has value, but there is not much effort in making one and they could be created for infinity. In addition, we can be certain that the $100 will be worth less in the future.

    Gold on the other hand, is the only form of money that over long periods of time will hold is value vs. every currency in history (think USD, British pound, Japanese yen, ect)
  • PowerlunchmoneyPowerlunchmoney Posts: 272 Bronze ✭✭✭
    edited February 16
    I'll add that currencies being government imposed promisary notes were meant to have been redeemable for their gold equivalent. There are hundreds of currencies but only gold and silver were considered money.





    A silver certificate which they called "lawful money" in 1933 after having abandoned the gold standard:


    The Fed knew the difference back then. They've long forgotten that freedom and sound money go hand in hand.
  • Lone_StarrLone_Starr Posts: 94 Bronze ✭✭✭
    @LGJ this might help.

  • GoldNRollGoldNRoll Posts: 134 Bronze ✭✭✭
    @LGJ
    Both currency and money stand as medium of exchange and unit of account. But there are 2 properties that money have and currency don't.

    The first one is practical:
    Money preserves the value of its unit of account over time, currency not necessarily. One gram of gold roughly buys today the same goods as their equivalent thousands of years ago. The "paper" dollar lost 99% of its value since the Federal Reserve began to devalue it in 1913.

    The second one is fundamental:
    Money is what people freely choose to use for exchange and unit of account. Currency is whatever abstraction is imposed by a central power.
    If today the Government declares that the "paper" dollar is not the national currency anymore; so people can use aside it, whatever they want for exchange, accountability and payment of taxes. Do you think people would stick with the paper notes or they would begin using gold, silver, bitcoin and other commodities until one will emerge voluntarily? I guess that the one perceived as most stable and precious will emerge. What do you think?
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