Money
Money to be money needs to be store of value over long period of time. This is why Lindy Effect is important (this is sentence in currency also).
Money is how we transfer wealth. Money is social credits; it’s the ability to have credits and debits of other people’s time.[1]
Myths about money
You Can Not Eat Gold and Silver
It's true that you can't eat gold and silver, but you also can't eat US Dollars, British Pounds, or any currency.
What this myth's implying is that gold and silver cannot buy food as easily as currency. This may be true today, but as people become more disenchanted with the falling purchasing power of currency, they will become more excited about accepting gold and silver money as payment.
Hard to Sell Gold and Silver
This myth preys on the novice investor lacking information. It's very easy nowadays to exchange your gold and silver for currency. Even more importantly though, access to your gold and silver are not tied to banks or the financial system. As Mike Maloney explains in his book:
"When the terrorist attacks happened September 11, 2001 the banks were closed, and ATMs ran out of cash. But the precious metals dealers were open and you could walk in with your gold or silver, and walk out with $100 bills. The precious metals dealers were the banks that week."
Gold is a Commodity
While gold is currently cited as a commodity, it has been officially recognized as money throughout history. In fact, it was officially recognized as such in the US Constitution "No State shall make any Thing but gold and silver Coin a Tender in Payment of Debts"
We can distinguish gold from commodities even further. Commodities like wheat, oil or lumber are all consumed; whereas gold simply accumulates. Gold that was mined 2,000 years ago is still used today. You cannot say that about wheat.
There Isn't Enough To Go Around
Gold is infinitely divisible because Governments can stamp whatever currency number they want on an ounce of gold. This means a gold coin could have a stamp of $50, $500, or $5,000.
