Great work as always. I don't mean to criticize in a bad way, rather some thoughts, maybe valuable maybe not to you (see what I did there with the words? xd) Shouldn't money be considered as a commodity simply because it is, after all, something that bares value in and of itself, you can profit off of money by putting it into a bank under interest or you could use it to buy money of another currency in order to profit, therefore there is a supply and demand relationship for money, thus wouldn't it be fair to assume that money is a commodity in this sense?
Hello, thank you very much for being here :) Money is a very complex topic, and I am not an expert either, but few thoughts: Fiat money (e.g. the dollars) can function as a mean of payment, a unit of account, a store of value, and as a standard of deferred payment, as long as the law says so. But beside it, it is not a commodity in the sense of gold and silver, because when one extracts the “money status” from the dollars that is granted by the law, the paper money’s value goes to zero. This is not the case with gold and silver, which can serve other purposes (e.g. in the electronics industry) besides serving as a medium of exchange (or in other words as “money” as it was during the medieval era). The point that money can be used to ‘make more money’ on the foreign exchange market classifies it as a highly-liquid speculative asset, but not directly as a commodity.
Great work as always. I don't mean to criticize in a bad way, rather some thoughts, maybe valuable maybe not to you (see what I did there with the words? xd)
Shouldn't money be considered as a commodity simply because it is, after all, something that bares value in and of itself, you can profit off of money by putting it into a bank under interest or you could use it to buy money of another currency in order to profit, therefore there is a supply and demand relationship for money, thus wouldn't it be fair to assume that money is a commodity in this sense?
Hello, thank you very much for being here :)
Money is a very complex topic, and I am not an expert either, but few thoughts:
Fiat money (e.g. the dollars) can function as a mean of payment, a unit of account, a store of value, and as a standard of deferred payment, as long as the law says so. But beside it, it is not a commodity in the sense of gold and silver, because when one extracts the “money status” from the dollars that is granted by the law, the paper money’s value goes to zero. This is not the case with gold and silver, which can serve other purposes (e.g. in the electronics industry) besides serving as a medium of exchange (or in other words as “money” as it was during the medieval era).
The point that money can be used to ‘make more money’ on the foreign exchange market classifies it as a highly-liquid speculative asset, but not directly as a commodity.
wait this isn't the "dog" video I was in