Money: From Eden to Ethereum

Money
Version Currency Form
0 None 'Garden of Eden'
1 Barter Direct exchange of goods and/or services
2 Token Gold, silver, shells, barley, [share certificates]
3 Money Notes or coins backed by gold, silver etc
4 Fiat Notes or coins not backed by gold, silver etc
4.1 Global SWIFT, Western Union
4.2 Card Credit card, debit card, stored value card
4.3 Online PayPal, card payments, online funds transfer
4.4 AppEwallet, QRcode, NFC, digital bank
5 Crypto Bitcoin, Ethereum, IOTA, Ripple, Libra

Functions of Money
  • Medium of exchange - Accepted for payment for goods and services
  • Unit of Account - A hotdog cost $1 and a Tesla $35,000
  • Store of Value - Can be saved in a bank (or tin box) and used later

Properties of Money (Classical) 1
  • Fungible - Any dollar note is the same value & exchangeable with any other
  • Durable - The note (or coin) does not wear or tear easily
  • Portable - Can be readily carried from place to place for reasonable amounts
  • Recognisable - And able to easily distinguish $1 from $5 from $10 etc.
  • Stable - Hotdog doesn't cost $1 one day, $10 the next and 20¢ the day after.

Properties of Money (Crypto 1.0)
  • Anonymous - 'Can buy weed' (preserve privacy)
  • Immutable - Once paid, it is paid, cannot be reversed
  • Decentralised - Not controlled by authorities
  • Programmable - Automatic contracts.

Properties of Money (Crypto 2.0?)
  • Accessible - Easy onboarding (no need specialised knowledge or procedures).
  • Sovereign - Not readily banned or money withheld ('like with PayPal')
  • Liquid - Widely accepted for online and offline payments
  • Safe - Does not naturally attract scams
  • Fast - Near instant transaction confirmation