Crypto tokens

are not money.

Why are we here?

1. Money is a core part of our modern society.

2. In order to live better in such society, we need to understand
money.
3. We are here to try improve of knowledge of money.
In summary, we are here to do ontology.
Why are we not here

I To discuss investment strategies.

I To discuss decentralized distributed database systems.
I To discuss politics.
What is money?

I Most commonly used medium of exchange (Human Action,

The Scholar’s Edition), allowing indirect exchange. It also has
uses that derive from that:
I Unit of account
I Store of value
I Means of deferred payment (credit)
How does it come about?

1. For any media of exchange to emerge and for any commodity

to become a media of exchange, it has to have had a price
before it was used in indirect trade;
2. This price must have been decided in terms how well it
satisfies our needs compared to how well other goods and
services satisfies our needs;
3. Only when a commodity has a price in terms of other goods
can the extra ‘exchange-value’, gained through pleasing our
needs to facilitate trade, be added on to it. Nothing can gain
any exchange-value before it is valued for its direct use.
(Kuritzén 2018; Shostak 2013)
But what about Fiat (such as the USD)?

I From this line of argumentation, one would also have had to

say the same about USD when it first was used and was
redeemable for gold.
I But now we are here in present time and USD is the most
widely used medium of exchange without it being neither
backed by gold or. . . (Kuritzén 2018)
The answer

1. USD was a token for silver, thus being a medium of exchange

and having a price in terms of goods.
2. It was cut by the Federal Gov during the Secession War:
During the early American Civil War, the federal govern-
ment first issued United States Notes (the first greenback
notes), which were not redeemable in gold and silver coins
but could be used to pay all dues to the federal government
(Wikipedia contributors 2022)
3. But the price was kept, because of Legal tender laws:
Legal tender is anything recognized by law as a means to
settle a public or private debt or meet a financial obliga-
tion, including tax payments, contracts, and legal fines or
damages (Team 2021)
What are crypto tokens then?

a new way of employing existent money in transactions.

Because Bitcoin is not real money but merely a different
way of employing existent fiat money, obviously it cannot
replace it.
Referências I

Kuritzén, Sam (June 2018). “Cryptocurrencies and the Regression

Theorem”. PhD thesis.
Mises, L. Human Action, The Scholar’s Edition. Ludwig von Mises
Institute. ISBN: 9781610164313.
Shostak, Frank (Apr. 2013). https:
//mises.org/library/bitcoin-money-myth#main-content.
Team, The Investopedia (2021). Legal Tender. https:
//www.investopedia.com/terms/l/legal-tender.asp.
[Online; accessed 27-May-2022].
Wikipedia contributors (2022). Legal tender — Wikipedia, The
Free Encyclopedia. https://en.wikipedia.org/w/index.
php?title=Legal_tender&oldid=1088134233. [Online;
accessed 27-May-2022].