The history of money isn't just a history of economics. It's a history of technology. Doing a history of technology video was a lot of fun. Let me know what you think!
The history lesson was cool, but u didn't define imaginary or fiction. Because e.g. one could argue that if you can use money, it's not fiction, its reality. So nice nice story, but it has plotholes :P
I read a Swedish book by an economics journalist "What is money?" (Andreas Cervenka). He begins with (paraphrasing): "If a child asks a banker or economics professor what money really is, the adult in question will have a hard time giving an immediate straight to the point answer". This video explained it really well though. 2:35 Fun fact. I was 10 when I saw Dumb & Dumber here in Sweden 🇸🇪. I always thought the pieces of papers where just the plain old receipts. It was not until a few years ago I learned about the technical term "I Owe You". I think the Swedish term is #skuldebrev
John Searle has a book called "The Construction of Social Reality" that talks about the kinds of things that are "true" only because humans agree that they are true. Money is one of them. Also laws, governments, sports rules, units of measurement, and more.
@@girlsdrinkfeck we're catching up with the rest of the world. Our cards have changed quite alot in the past few years. The mag strip is still on there but it's hardly used anymore. Most card readers use chip pay. Which in most cases you can still enter a PIN. Some banks also offer tap pay with their cards in addition with chip and mag strips. My guess is this may be a transitional time period where the old still exists until everyone catches up.
The success of this channel is proportional to the intelectual value that it delivers. I'm glad that those fiat currencies and technologies allowd me to watch your content.
Not until they fully upgrade/rebuild the current road systems. According to a couple of ai expers that we’re on Rogan, it’s actually very far off, if not impossible due to the mixture of people driving cars and automated cars using the same road. I personally would rather take my chances driving my own car around bad drivers than to drive around an ai or be driven by an ai. Even if there is technically “less accidents” that’s because most people are bad drivers. I am not a bad driver. Self driving cars are a form of communism. The best drivers have the same chance as the worst drivers I say let the bad drivers crash so evolution continues
@@liammorgans7329 This is wrong on so many levels. No matter how good a driver you think you are, you'll never be as good as an AI. An AI has a reaction time of a few nanoseconds. Can you claim the same? An AI never feels tired, can you claim the same? An AI never feels stressed, never gets sick or drunk, can you claim the same? An AI is part of a network of communicating AIs on the road, giving each others real-time information on traffic and their own intentions. Can you say the same about you and other drivers? It's like if a human could be on the phone while driving with every other conductor in the world simultaneously, but without all the problems of being on the phone while driving. Also, no, it's not a form a communism, and I have no idea how you can possibly come to this conclusion. There's just not a single link. Finally, when you say, "let the bad drivers crash", please dude, have some dignity, you are talking about real human lives. Plenty of accidents have happened to very good drivers. To people just like you. People like you who are now dead, but we can save many more using that technology.
Please read my comment thoroughly before questioning my dignity, thanks. I said it’s not possible yet according to ai experts. Because the road is a mixture of people drivers and ai. If they make a road purely for automated cars, then I will use it. But until then, I’m gonna listen to what the ai experts say regarding its flaws due to things ai can’t account for. I explained how it’s linked to communism, either argue what I said or don’t, pretty weird to say you don’t see the connection when I just explained it.. Again, please take the time to read comments before you respond and question someone’s dignity. Very lazy of you. just wasting both our time to feel morally superior without actually presenting rebuttals to my actual arguments. Time is precious my friend. Show some dignity by considering the time others have to put into conversations too. Just joking, I just wanted to question your dignity for jokesies.
@@liammorgans7329 The dignity comment wasn't about your argument, but specifically about the "Let the bad drivers die" comment. That was a really, really untasteful thing to say, and you totally deserved to be called out on it. At least admit it instead of acting all butthurt about it... I literally rebutted _everything you said_ and all you can say is "hurr durr you didn't read me." I think it's you who didn't read my rebuttal. An AI _is_ a better driver than you are already. I've explained it. You argument of authority about so called "experts" doesn't hold any ground without a source. The limitations are not technical, they're purely legislative. That's the only reason why they'll take a few years to become the majority of cars at all.
Joe, you are super awesome...you can't make this any simpler....beautifully explained, amazing scripting and editing.....super awesome and super thanks!!!!
Yeah. Computers are nothing more then calculators with automatic memory management built in. That is all you need. Able to do arithmetic and logical operations and store those values in some ways.
Yeah but computer run on electricity, and theres electricity in clouds because that's where Zeus stores his thunderbolts when hes busy having sex with random women while pretending to be various wild animals.
@imshippyupup Plenty of people misunderstand what it means when something's done "in the cloud". It's literally just someone else's computer, or many of them. Saying BTC is stored "somewhere in the cloud" leaves the average person thinking it's all hinging on trusting some confusing... something, somewhere, that only experts can really understand, and may be of dubious authenticity. The whole point of BTC is that everyone has a shared ledger of it. The point of a metaphor is to help someone understand something. If a metaphor is likely to leave the listener with an incorrect understanding of the matter at hand, then it's a bad metaphor. You can clarify the tricky bits of a bad metaphor without hating metaphors entirely.
Money is basically something we invented to satisfy our selfishness. If we didn't expect things in return from others after doing them favours; money wouldn't exist, as we wouldn't need a way to record how much and how many people owes us things. Not to say that money isnt important(I mean it helped the human civilization advance and will help it future advance), but it was something we invented just to ensure we somehow, get back the things that others owe us.
I mean all of these school subjects are important, just these discussions need to be added as well. Learning about Egyptians and history help to learn about culture and stops some people being ignorant
I'm sitting here balancing my accounts and transferring money between banks like its nothing and in fraction of seconds, all while watching this video and it blew my mind. What a time to be alive.
In the stone age, I used a kind of high speed camera that had a 16K (yes, K) HDD. It was huge, took about 5 min. to spin up to operating speed and cost $30,000 ! Amazing how far we've come.
Except while what's being traded are sometimes physical goods, what the money stands in for isn't so much the goods themselves, but the labor that went into making them. Really, money is labor.
@@BlackBanditXX no. It should be representation of value or labor but it is not. Otherwise you would be paying about 2 grand for a brand new luxury car. Thats a high end cars labor value, about 2 grand.
Joe - this is great! You are branching out into the scienceverse of Sciencenomics! One thing I should mention is that we can't trade in gold for dollars because we left the gold standard in 1933. Before then, consumers really could take dollars to the government and trade them in for gold (and vice versa), which played an important function in the maintenance of the value of the currency against other currencies. It's a kind of very, very conservative monetary policy (which may have also cased the Great Depression - just sayin'). You can read the whole fascinating story in works by Barry Eichengreen of UC Berkeley, particularly "Globalizing Capital."
Money as a social construction, it is not "real" but socially accepted as one. Though it has it's artefacts, it doesn't exist outside human conventions, The meaning is emitted by humans. This holds for many other phenomenon.
Dad: "Money doesn't grow on trees son!!" Son: "Yes it does, you gotta sell the tree!"
5 років тому+17
Let's just stop at thinking that gold is valuable. I mean, sure it's somewhat rare, but it's already strange to add an imaginary value to a piece of metal found in the ground. Money itself is not that different from it.
Yeah. How is gold considered valuable. Yeah. They say it's rare but like so what? Why after that? Like why is a hundred pounds of gold worth X amount of dollars in the 16 hundreds vs a hundred pounds of gold being worth X amount of dollars in 1986?
The technology changes, but the dynamics stay the same. A currency invented by powerful people who force us to believe the currency itself actually matters.
A really great book I'm reading right now talked about this 2 chapters ago from where I am, it's called Sapiens, and it looks at the history of humanity through different aspects as humans gained control of the planet. I would definitely give it a read, the money chapter in particular was super super interesting
Modern monetary theory: why have we agreed on a particular currency? The theory suggests it's because a central authority wants you to pay them in that currency. Now everyone wants a bit of that currency so they can pay the central authority.
It's just too convenient. Every time I try to do a thought exercise for a society without currency starting from necessity barter (because without specialization, society moves at a creeping pace) it just gets too complicated not to develop and use a system of representative value.
@@PJ3232PJ at least on current Earth, natural resource availability is not uniform, and neither is individual need/want for items or services. If we tweak the scenario to remove scarcity and include an unlimited labor force, the solution becomes less practical. Maybe the biggest problem is just human greed and consumption
Yeah the only way a society without money evolves is for that society to be comprised of aliens with a psychology leaning towards group think/hive mind.
This is focused on money, but it makes you think about all the other arbitrary things we make up but attribute value to, like the little squiggles of writing, or even the sounds of vocalized language itself. I love the abstractions that help civilization function! ☺️
Well done. I would love to see a basic financial literacy channel along the same style lines as your science videos. Kids - and adults - need it desperately as it is neglected in schools.
Thousands of years developing ways to use it more efficiently and now we have to abolish it. Could have spent that time actually building an equitative and horizontal decentralized society, but alas, better late than never. At least we now have the means to not have to worry about scarcity. You know, other than capital-imposed scarcity.
lmaooo love how you included that fun fact about yap!!! here is another fun fact their stone money was cut from quarries that are on my island (Palau) and then transported via outrigger boats to yap, another fun fact, us Palauans use clay beads that were given to us by the Spanish conquistadors in the 1500s they were used as door curtains and strung in long rows. their worth is determined by their size and color (in order from most valuable to least Yellow, Orange, Red, Blue, and Green.) our women wear them as necklaces and they are given from their husband's family as a sort of dowry. and you (traditionally) could only marry within your social/village class.
Thank you for the great video :) I recently visited one of the money printing facilities in Fortworth Texas, and the experiences was absolutely mind blowing. It made me think about what really is money and what's all about it. Ih and by the way, at 4:49 when the 12th century Chinese economy is explained, a Japanese drawing was used in the video.
Great, as always. Note that cryptocurrencies consume a huge amount of electricity. Towns with loads bumping up against capacity have had to limit or ban mining.
I have a background in finance/economics, and 1) this was a great, factually correct video; 2) can you guys please, please release a t-shirt with that “magic of accounting” graphic from the end of the video? Thanks!
Except technology isn't why money exists. Money exists because humans needed a means of exchange other than direct trade of goods. Technology enhanced and made money more usable, but it didn't create it.
Other means of exchange can be done which do not require money. Many societies have operated without money but instead operated upon something simular to gift economies. Money isn't intrinsic nor a requirement to operate economies of scale. It's just the most deployed.
@@RationalAndFree those societies were not complex enough to need money, when you get to a certain degree of economic development money is indeed needed
@@pedrolmlkzk that's goes against the historical records. Also,economic development is just a fancy way of saying haven't gotten the same sense of value as us. Using your own culture as a the basis of what is considered the end goal is both entirely circular and also pretty colonialist in its underlying assumptions.
1) that’s technology. Saying technology didn’t invent agriculture, the human need to have a stable source of food did wouldn’t really be right. These things *are* technologies. 2) direct trade of goods isn’t really how Paleolithic economies worked. The exchange was basically a pretty complicated social network of shared reliance’s rather than “you give me shoes and I give you a shirt” barter.
@@danidosie You're welcome. I always found it very helpful when others corrected my French, German and English. Often the important subtleties of syntax, grammar and diction still escape me.
You forgot too mention that money is a certificate for work, imaginary money is the money invented without work and therefore debts. If money is not work or debts you get hiperinflación. Why do Bitcoin increase of value? Great video just add this kind of clarification
There are some channels where the community is much more entertaining and, dare I say, smart than others and to this day, this amazes me as they all exist on the same side.
Banks and governments having no control over cryptocurrency is all nice and dandy, as long as things work. But I prefer to have my (admittedly rather small) monetary wealth in a currency where I'm guaranteed by law to get a certain amount of it back, should the bank ever go bankrupt. Instead of it all just vanishing into the digital aether.
@@rolfs2165 that's fair enough. But it hasn't worked out well for those in pretty much every country other than the US whose purchasing power is either being gradually eroded or abruptly hyperinflated. I choose to park money in the more scarce system (Bitcoin) which has gone up in value 98% of it's existence & will continue to do so over time vs fiat currency.
What is money 💰 ? I had this question all my life. Thank you for explaining it 😊 Can you make a video on how to do reascerch on any topic it will be really helpful 😁
Very interesting indeed. With the notion of stored value coupled with the notion of intrinsic value there could be a management solution... Hmmm how to negotiate this idea into non-fiction?...
The word "control" was originally a term used to describe the use of multiple ledgers to verify accounts. That came to mind when you started talking about Bitcoin-etc.
If humanity has reached a point of efficiency where scarcity of economic desires is overcome, money will decline to a similarly symbolic role as today´s monarchies before declining altogether.
@@lare290 Even if by a miracle all the rich got morals and decided to change that, a majority of people wouldn't want it. Too many have bought into money. It's the poor who want to become rich or at least better than their neighbor or at least better than the homeless guy who wouldn't want the money system to change. The people who wasted their life working for others, making others rich, would be opposed to it, as they would feel cheated. Giving up money would mean they've wasted their life. It's the old people who are used to and have invested too much of their time in this who would opposed to it. They wouldn't want "the moochers", the "social parasites " who haven't worked as much as them or even worse, simply haven't earned as much as them until now, to be suddenly equal. People are petty. Sadly, many don't want others to have it better. They want others to suffer as much as they did or even more. Even the poor like to have someone below them.
No, bitcoin it the most soft as it's software. Being the easiest money to manipulate, it does a great job at illustrating the utter failures of currency and monetary theory that humans can possibly come up with.
I don't think you grasped how crypto exactly works because lot of your points are just not true. You can create a paper/hw wallet right now and government has no chance to know your password, if u store your cryptocurrency on an exchange, sure it's a record government can track. Bitcoin is open-source so patent laws don't apply (Some cryptocurrencies are privately developed, that's a different story) Why would ANY crypto be backed by physical assets like gold, it doesn't make sense, the value in Bitcoin comes from its limited supply and its deflation. The transactions depend on supply and demand of miners to users of the network, Bitcoin transaction takes up to 30 minutes, mostly less. Many other crypto projects already delivers sub-second transactions. Mastercard server can be hacked and friend by EMP. In order to remove records of Bitcoin ledger, you would have to hack/fry EVERY single recond on every device that has the blockchain copy. Also, there are so called "privacy coins" that work just like bitcoin but the history of transactions is not accessible, so they are private.
@@majkcan Crypto currencies aren't accepted in most locations, so 'companies' operate on the exchange of crypto currencies for fiat currencies. This demonstrates the problem of crypto currencies that its only valuable when it gets changed into fiat currency, undermining the point of it. Its value is also a reflection of its trade against fiat currency. Your just adding another level of abstraction to the game, which is pretty pointless. Its also highly unstable, much more than fiat currency and subject to manipulation which isnt nearly as easy as nominal currency. The underlying tech is useful in other contexts I grant,but it's a pretty terrible form of money, which is already a terrible idea to begin with.
@@RationalAndFree Bitcoin is supposed to be MONEY meaning something that maintains its value over extended periods of time and NOT a currency you spend day to day. Why? because they're better alternatives to use day to day. Its not competing with the likes of payment processors like visa, mastercard etc but the USD, EURO, YUAN, GOLD etc. its competing with them on having the better monetary principles like not being susceptible to debasement, verifiable scarcity, not being able to be counterfeited, censorship resistant, the list goes on. The "Underlying" tech, the blockchain is just a slow ass database, so without the bitcoin protocol, its relatively useless as centralized servers are better hence why most tech companies dont use the blockchain despite it being around much longer than the idea of bitcoin in the first place.
He left out MMT: Modern Monetary Theory which brought money into existence from the government decree that you must pay your taxes with my newly created money which is your debt to my services I provide.
Yeah this is often forgotten which I feel is a reason why a lot of people think Fiat currency is more imaginary then it really is. There are consequences for not paying your taxes. And the government only accept you paying it in there preferred currency after all.
@@Cythil ----Yes, and paying your taxes and your house/rent is the measuring stick for all other consumption prices, just as the ond market determines all the prices for all the other financial instruments.
@@Cythil That's because essentially their debt is towards the U.S. government or the government of the currency (EURO). At the mercy and whims of the foreign government's policies and actions, becomes unstable if they are substantially different from each other. In that situation, the government creating the currency is not vulnerable, the one relying on the foreign currency is!
@@stridedeck Well, I was more referring to crypto and that like. But government that do not have faith in there own currency tend to experience a lot of inflation to. The good old trying to print you way out of debt rather then collect it from you tax payers.
money is an unit of accounting. It can be centralized (National fiat currency) or decentralized (gold , cryptos). Both works. With centralized version, the national government taxes you to destroy the money they created, and also spends much resources to fight counterfeit. Also, in this world there are millions of accountants doing their part to balance everything to make sure there is no double spending. Money is a zero sum. One person's spending = another's income. One person's debts= another's savings. It all balances out. If it didn't then why the heck do we even need accountants in this world then?
Bank notes are just promissory notes. Read what it says on them 'I promise to pay the bearer on demand the sum of...' Its just basically an iou, with nothing of value to back it up.
The history of money isn't just a history of economics. It's a history of technology. Doing a history of technology video was a lot of fun. Let me know what you think!
How did you post this 17 hrs ago
Please do your homework about Bitcoin.
The history lesson was cool, but u didn't define imaginary or fiction. Because e.g. one could argue that if you can use money, it's not fiction, its reality. So nice nice story, but it has plotholes :P
I read a Swedish book by an economics journalist "What is money?" (Andreas Cervenka). He begins with (paraphrasing):
"If a child asks a banker or economics professor what money really is, the adult in question will have a hard time giving an immediate straight to the point answer".
This video explained it really well though.
2:35 Fun fact. I was 10 when I saw Dumb & Dumber here in Sweden 🇸🇪. I always thought the pieces of papers where just the plain old receipts. It was not until a few years ago I learned about the technical term "I Owe You". I think the Swedish term is #skuldebrev
It was really good keep it up
I would be perfectly fine with a random cosmic ray turning my 24$ into 1048$
$24
You wouldn't like it if the $24 you paid for groceries suddenly turned into a debt of $1048.
@@imveryangryitsnotbutter ??
An Angry IS-6 inflation turning your 1000$ into 24$ worth papier in 40 years
It could happen both ways though.
"Money don't grow on trees"
Well if everyone agreed that Leaves are the currency then it is
Ya that's true
People would be planting trees so quick..
@@bluelotus.society Brilliant! What’re we waitin’ fo’?
* Laugh at selling fruits *
I don't think you have met Mr Beast
Those Mesopotamians were pretty advanced. The farmer is even wearing what appears to be a modern vision correction apparatus.
Lol you're funny
hhahaahha
Well, obviously, he's a time traveller
I love ur observation. Lol😂😂😂😂😂😂
Meaning through the magic of capitalism he gets to pay to use his eyes/are a miracle for low vision hordes.
John Searle has a book called "The Construction of Social Reality" that talks about the kinds of things that are "true" only because humans agree that they are true. Money is one of them. Also laws, governments, sports rules, units of measurement, and more.
I haven't read that, but that was also a very prominent theme in Yuval Harari's *Sapiens*
I need this book!
So you just covered my entire half-year course in high school in 10 minutes.
U learn about history of money in 6 months ?
Damn u need to talk to ur teacher.. its not efficient
So Fallout was right on the money with using bottle caps as a medium of exchange!
not far off from how usa treats money ,so outdated ! i cant beleive in usa they still use cheques and mag stripe cards and wireless payment is rare
@@girlsdrinkfeck My local bank sent me my chipped card last year. By then, I had already listened to a podcast about how chips will soon be outdated
@@girlsdrinkfeck we're catching up with the rest of the world. Our cards have changed quite alot in the past few years.
The mag strip is still on there but it's hardly used anymore. Most card readers use chip pay. Which in most cases you can still enter a PIN.
Some banks also offer tap pay with their cards in addition with chip and mag strips. My guess is this may be a transitional time period where the old still exists until everyone catches up.
@@Vyseblues yh we had chip pay since 2002 here and NFC contactless pay around 2015
@@justcallmeSheriff thats why we had chips since 2002 and NFC cards in 2015 for contactless payments , of which over 90% of stores implement
*Money is a Tool for trade*
Built mainly on Trust for the Buyer and the Seller
A Fictional Value valued enough to be true
Capitalizing the Nouns and Adjectives in my Sentences helps me pretend to seem Highly Educated.
There's nothing fictional about the favors/goods you can redeem with money.
The most valuable thing in the universe!
@@lucasbudega until the seller do not want this money because no one trust this currency anymore.
That fictional thing is more valued than environment. What the ** ? One day we will realise that it is fictional and planet is real.
Thumbnail: "I'm not real"
Me: "Yeah, you're a dollar."
But if a Dollar is also 4 Real, is it more real than dollar?
@@appmenezes *mind blown* 🤣
Real means "royal", not "real" lol
@@transit-future _spanish?_
@@TheAliceUwU no real is the brasil currency in brasil we speak portuguese not spanish
The success of this channel is proportional to the intelectual value that it delivers.
I'm glad that those fiat currencies and technologies allowd me to watch your content.
For something that is essentially imaginary, people sure do value it very much, even more than the lives of other people.
What to do tbh, other ppl give u what u need and want by sending them those imaginary numbers
And i give my life my hours my consciousness for money.
It is an imaginary medium to get one real things - money buys you land, food, even buys you time, to say it is not real is false
Money is an abstract you can exchange for tangent value. It's not imaginary.
"Fewer people = Fewer errors"
And this, people, is why self-driving cars are inevitable.
And I am Ironm- oh sorry wrong person
Not until they fully upgrade/rebuild the current road systems.
According to a couple of ai expers that we’re on Rogan, it’s actually very far off, if not impossible due to the mixture of people driving cars and automated cars using the same road.
I personally would rather take my chances driving my own car around bad drivers than to drive around an ai or be driven by an ai.
Even if there is technically “less accidents” that’s because most people are bad drivers. I am not a bad driver.
Self driving cars are a form of communism. The best drivers have the same chance as the worst drivers
I say let the bad drivers crash so evolution continues
@@liammorgans7329 This is wrong on so many levels.
No matter how good a driver you think you are, you'll never be as good as an AI.
An AI has a reaction time of a few nanoseconds. Can you claim the same?
An AI never feels tired, can you claim the same?
An AI never feels stressed, never gets sick or drunk, can you claim the same?
An AI is part of a network of communicating AIs on the road, giving each others real-time information on traffic and their own intentions. Can you say the same about you and other drivers? It's like if a human could be on the phone while driving with every other conductor in the world simultaneously, but without all the problems of being on the phone while driving.
Also, no, it's not a form a communism, and I have no idea how you can possibly come to this conclusion. There's just not a single link.
Finally, when you say, "let the bad drivers crash", please dude, have some dignity, you are talking about real human lives. Plenty of accidents have happened to very good drivers. To people just like you. People like you who are now dead, but we can save many more using that technology.
Please read my comment thoroughly before questioning my dignity, thanks.
I said it’s not possible yet according to ai experts.
Because the road is a mixture of people drivers and ai.
If they make a road purely for automated cars, then I will use it.
But until then, I’m gonna listen to what the ai experts say regarding its flaws due to things ai can’t account for.
I explained how it’s linked to communism, either argue what I said or don’t, pretty weird to say you don’t see the connection when I just explained it..
Again, please take the time to read comments before you respond and question someone’s dignity. Very lazy of you.
just wasting both our time to feel morally superior without actually presenting rebuttals to my actual arguments.
Time is precious my friend. Show some dignity by considering the time others have to put into conversations too.
Just joking, I just wanted to question your dignity for jokesies.
@@liammorgans7329 The dignity comment wasn't about your argument, but specifically about the "Let the bad drivers die" comment. That was a really, really untasteful thing to say, and you totally deserved to be called out on it. At least admit it instead of acting all butthurt about it...
I literally rebutted _everything you said_ and all you can say is "hurr durr you didn't read me." I think it's you who didn't read my rebuttal. An AI _is_ a better driver than you are already. I've explained it. You argument of authority about so called "experts" doesn't hold any ground without a source. The limitations are not technical, they're purely legislative. That's the only reason why they'll take a few years to become the majority of cars at all.
Joe, you are super awesome...you can't make this any simpler....beautifully explained, amazing scripting and editing.....super awesome and super thanks!!!!
I'm an accountant. Fun fact: the computers that banks use are still glorified calculators.
If it's not broken, don't fix it.
I mean, all computers are glorified calculators...
Yeah. Computers are nothing more then calculators with automatic memory management built in. That is all you need. Able to do arithmetic and logical operations and store those values in some ways.
@@karasu178 I think he meant that banks still use very simple computer programs (COBOL and assembly) from the big mainframe heydays.
HMQ are you assuming their gender?
Fascinating & engaging summary for how money came to be and how it works. Thank you!
It's so complicated yet so simple
The ledger of cryptocurrencies isn’t “somewhere in the clouds,” it’s stored on every computer that runs a node in the network.
Yeah but computer run on electricity, and theres electricity in clouds because that's where Zeus stores his thunderbolts when hes busy having sex with random women while pretending to be various wild animals.
@imshippyupup Plenty of people misunderstand what it means when something's done "in the cloud". It's literally just someone else's computer, or many of them. Saying BTC is stored "somewhere in the cloud" leaves the average person thinking it's all hinging on trusting some confusing... something, somewhere, that only experts can really understand, and may be of dubious authenticity. The whole point of BTC is that everyone has a shared ledger of it.
The point of a metaphor is to help someone understand something. If a metaphor is likely to leave the listener with an incorrect understanding of the matter at hand, then it's a bad metaphor. You can clarify the tricky bits of a bad metaphor without hating metaphors entirely.
r/iamverysmart
this is actually the best explanation for cryptocurrency ive ever seen
This just reinforced my hatred for money. It's not even real, yet it determines virtually every aspect of our lives.
Joe: Money is not Real.
Me a Brazilian: Hold up.
Guess he is wrong there...
ikr the first thought that I had
I didn’t understood... is it cause REAL is the Brazilian money?
Canal Sensum Sensum channel yeah.. Brasil money is called ‘real’
@@transit-future why are you talking about spanish and it is real.
Money is basically something we invented to satisfy our selfishness. If we didn't expect things in return from others after doing them favours; money wouldn't exist, as we wouldn't need a way to record how much and how many people owes us things. Not to say that money isnt important(I mean it helped the human civilization advance and will help it future advance), but it was something we invented just to ensure we somehow, get back the things that others owe us.
Why am I watching a video about something I don't have lol
Learn ;)
for the same reason why I watch romantic movies even though I suck at flirting
jk lol, I hate romantic movies
You watch pornography don't you?
@@garethdean6382 LMAO, MUCH BETTER EXAMPLE
You can watch a video about a black hole, but you don't have a black hole! (well, at least, you shouldn't)
Why can’t we have these discussions in school instead of how Egyptians stirred the brain?
@tzar 1917 no such this as "nonsense" we're all interested in different things
@tzar 1917 okay..... So much for entertaining simple minded person
Two words John Rockefeller, I don’t want a nation of thinkers, I want nation of workers.
Oh i wanna know how Egyptian stirred the brain
I mean all of these school subjects are important, just these discussions need to be added as well. Learning about Egyptians and history help to learn about culture and stops some people being ignorant
It's amazing how much we allow such an arbitrary system to govern our lives and values
I'm sitting here balancing my accounts and transferring money between banks like its nothing and in fraction of seconds, all while watching this video and it blew my mind. What a time to be alive.
This did not age well...
@@gjfkhvjzjsxbq yeah banks arent doing great rn
Joe: How money do you have?
Me: uhh 69 cents, Ah you know what that means, I don’t have enough money for chicken nuggets :(((
I have exactly 70 cents (AUD) which means I can only afford exactly one soft serve from maccas.
Assuming the machine is not broken
Jerry Rupprecht always is go to kfc mate it’s opposite of mc Donald’s good always works it is positive
There's an ice cream machine at kfc?
I've never seen one before...
Wtf is a macca?
Jonathan Spaulding It’s a nickname for McDonald’s said by Australian people, kind of like how people will say Mickey d’s or mcd’s etc
Nice to see a great channel endorsing another great channel
In the stone age, I used a kind of high speed camera that had a 16K (yes, K) HDD. It was huge, took about 5 min. to spin up to operating speed and cost $30,000 ! Amazing how far we've come.
The problem now, is people forgot "money" is nothing without the "real things".
Except while what's being traded are sometimes physical goods, what the money stands in for isn't so much the goods themselves, but the labor that went into making them. Really, money is labor.
@@BlackBanditXX no
@@BlackBanditXX no.
It should be representation of value or labor but it is not.
Otherwise you would be paying about 2 grand for a brand new luxury car. Thats a high end cars labor value, about 2 grand.
@@allhumansarejusthuman.5776
Not if you consider things such as the labor involved in making the smelter to smelt the metal to make the car.
@@stephenolan5539
That was already paid for before the car manufacturer received the metal parts.
Great video! I never made the connection between how the development of money has always been linked to advances in technology
Wow this was the best UA-cam video I've seen in a while!!! Thanks for this mind-blowing information
Joe - this is great! You are branching out into the scienceverse of Sciencenomics!
One thing I should mention is that we can't trade in gold for dollars because we left the gold standard in 1933. Before then, consumers really could take dollars to the government and trade them in for gold (and vice versa), which played an important function in the maintenance of the value of the currency against other currencies. It's a kind of very, very conservative monetary policy (which may have also cased the Great Depression - just sayin'). You can read the whole fascinating story in works by Barry Eichengreen of UC Berkeley, particularly "Globalizing Capital."
I love how in 7:31, the binary number is actually 24 without the 1! It's Ok to Be Smart has great attention to detail!
Money as a social construction, it is not "real" but socially accepted as one. Though it has it's artefacts, it doesn't exist outside human conventions, The meaning is emitted by humans. This holds for many other phenomenon.
Joe : How much money do you have?
Me : what money? I'm broke as a joke man
It's all make pretend anyway. If the ones controlling the world nullify the value of paper currency, we're all gonna be broke.
@@AfrahAfzal1997 Or Rick Sanchez
i swear pbs digital has some of the best channals on youtube ever
Dad: "Money doesn't grow on trees son!!" Son: "Yes it does, you gotta sell the tree!"
Let's just stop at thinking that gold is valuable. I mean, sure it's somewhat rare, but it's already strange to add an imaginary value to a piece of metal found in the ground. Money itself is not that different from it.
Anything human want becomes valuable :D
Yeah. How is gold considered valuable. Yeah. They say it's rare but like so what? Why after that? Like why is a hundred pounds of gold worth X amount of dollars in the 16 hundreds vs a hundred pounds of gold being worth X amount of dollars in 1986?
@@2111jade Because gold is shiny! People are like crows, we like shiny things,
The technology changes, but the dynamics stay the same. A currency invented by powerful people who force us to believe the currency itself actually matters.
This is a great video!! I always knew that money was represented by gold, but I learned a lot more from watching this video.
Thanks!!
A really great book I'm reading right now talked about this 2 chapters ago from where I am, it's called Sapiens, and it looks at the history of humanity through different aspects as humans gained control of the planet. I would definitely give it a read, the money chapter in particular was super super interesting
Yoooo finally someone recognized yap!! My home island
Modern monetary theory: why have we agreed on a particular currency? The theory suggests it's because a central authority wants you to pay them in that currency. Now everyone wants a bit of that currency so they can pay the central authority.
Would be cool to explain what is inflation and why it matters.
It's just too convenient. Every time I try to do a thought exercise for a society without currency starting from necessity barter (because without specialization, society moves at a creeping pace) it just gets too complicated not to develop and use a system of representative value.
what if everything is from everyone? no need to barter
@@PJ3232PJ at least on current Earth, natural resource availability is not uniform, and neither is individual need/want for items or services. If we tweak the scenario to remove scarcity and include an unlimited labor force, the solution becomes less practical. Maybe the biggest problem is just human greed and consumption
its easy but not now. Because we have to do things to get things.
Yeah the only way a society without money evolves is for that society to be comprised of aliens with a psychology leaning towards group think/hive mind.
This is focused on money, but it makes you think about all the other arbitrary things we make up but attribute value to, like the little squiggles of writing, or even the sounds of vocalized language itself. I love the abstractions that help civilization function! ☺️
Me: praying some cosmic force somehow changes my balance on my bank account to millions of dollars accidentally.
"how money do you have?"
DONT ASK!
much?
Even english language left you
Well done. I would love to see a basic financial literacy channel along the same style lines as your science videos. Kids - and adults - need it desperately as it is neglected in schools.
The Plain Bagel (Richard Coffin) fits that bill.
Fun fact: the first Egyptian writings were used for counting taxes.
Thousands of years developing ways to use it more efficiently and now we have to abolish it. Could have spent that time actually building an equitative and horizontal decentralized society, but alas, better late than never. At least we now have the means to not have to worry about scarcity. You know, other than capital-imposed scarcity.
lmaooo love how you included that fun fact about yap!!! here is another fun fact their stone money was cut from quarries that are on my island (Palau) and then transported via outrigger boats to yap, another fun fact, us Palauans use clay beads that were given to us by the Spanish conquistadors in the 1500s they were used as door curtains and strung in long rows. their worth is determined by their size and color (in order from most valuable to least Yellow, Orange, Red, Blue, and Green.) our women wear them as necklaces and they are given from their husband's family as a sort of dowry. and you (traditionally) could only marry within your social/village class.
Thank you for the great video :) I recently visited one of the money printing facilities in Fortworth Texas, and the experiences was absolutely mind blowing. It made me think about what really is money and what's all about it.
Ih and by the way, at 4:49 when the 12th century Chinese economy is explained, a Japanese drawing was used in the video.
thats kind of racist jokes but okay xD i am asian too, i am Indonesian
Great, as always. Note that cryptocurrencies consume a huge amount of electricity. Towns with loads bumping up against capacity have had to limit or ban mining.
I have a background in finance/economics, and 1) this was a great, factually correct video; 2) can you guys please, please release a t-shirt with that “magic of accounting” graphic from the end of the video? Thanks!
Also just the fact that there is an exchange for what value is it's an amount of work that a person does to give value
Except technology isn't why money exists.
Money exists because humans needed a means of exchange other than direct trade of goods.
Technology enhanced and made money more usable, but it didn't create it.
Other means of exchange can be done which do not require money. Many societies have operated without money but instead operated upon something simular to gift economies.
Money isn't intrinsic nor a requirement to operate economies of scale. It's just the most deployed.
@@RationalAndFree those societies were not complex enough to need money, when you get to a certain degree of economic development money is indeed needed
@@pedrolmlkzk that's goes against the historical records.
Also,economic development is just a fancy way of saying haven't gotten the same sense of value as us. Using your own culture as a the basis of what is considered the end goal is both entirely circular and also pretty colonialist in its underlying assumptions.
Well, if the wheel and the spoon are invented technology, money is too. So there goes your argument. My work here is done.
1) that’s technology. Saying technology didn’t invent agriculture, the human need to have a stable source of food did wouldn’t really be right. These things *are* technologies. 2) direct trade of goods isn’t really how Paleolithic economies worked. The exchange was basically a pretty complicated social network of shared reliance’s rather than “you give me shoes and I give you a shirt” barter.
It was a different time! So funny and so accurately describes the whole video
Thank you for these amazing educational videos! I practice my English listening comprehension skills and i learn soo much!☺️
left lots out like the fed reserve and its all being run criminals ....
Im also on the train but for German language.
these
@@wholeNwon thank you for correcting me
@@danidosie You're welcome. I always found it very helpful when others corrected my French, German and English.
Often the important subtleties of syntax, grammar and diction still escape me.
You forgot too mention that money is a certificate for work, imaginary money is the money invented without work and therefore debts. If money is not work or debts you get hiperinflación. Why do Bitcoin increase of value? Great video just add this kind of clarification
“Shared delusions of value.” Love it.
There are some channels where the community is much more entertaining and, dare I say, smart than others and to this day, this amazes me as they all exist on the same side.
this video creates some fascinating philosophical and sociological questions.
I went to high school with Julia from Two Cents, so proud of her and Philip for everything they've been able to build
Read Saifedean Ammous' The Bitcoin Standard
Great video! Care to make one about where new money comes from?
Thanks, very interesting, and I am learning some Korean with the subtitles ;)
Wow! Video blew me away. Staggering how far imaginery money has come! Thank you.
Long Bitcoin
Short the Banks
Money does not define a person's character worth. All it defines is the power you have in society.
And now we have Bitcoin. The first money governments & banks can't control :)
Technology & innovation meets money!
Banks and governments having no control over cryptocurrency is all nice and dandy, as long as things work. But I prefer to have my (admittedly rather small) monetary wealth in a currency where I'm guaranteed by law to get a certain amount of it back, should the bank ever go bankrupt. Instead of it all just vanishing into the digital aether.
@@rolfs2165 that's fair enough. But it hasn't worked out well for those in pretty much every country other than the US whose purchasing power is either being gradually eroded or abruptly hyperinflated. I choose to park money in the more scarce system (Bitcoin) which has gone up in value 98% of it's existence & will continue to do so over time vs fiat currency.
Bitcoin is not money.
@@voteforno.6155 I've been paying every bill I have in Australia for 4 years with bitcoin. Works pretty well here as money mate. :)
this video is so human that i started to bleed through my nose and in to my mouth in a loop action while crying tears.
surely this video will collapse the economy... I'm waiting
It's an allocation of political power. Pretty much as simple as that, when you boil it right down.
Since i’m a child i always thought that money was not real and if we decided that our new money was rocks i’d be rich.
Haha! Love the catan reference 💯💯💯
What is money 💰 ? I had this question all my life. Thank you for explaining it 😊
Can you make a video on how to do reascerch on any topic it will be really helpful 😁
Joe: "How much money do you have?"
Me: "Is this personal attack or something?"
"Nigerian Prince". My Nigerian heart is broken!!! 😭😭
Very interesting indeed. With the notion of stored value coupled with the notion of intrinsic value there could be a management solution... Hmmm how to negotiate this idea into non-fiction?...
Pumpermentals 🙌🏻 Love it!
I know bartering and time banking are not perfect but there has to be a better, more humane system that benefits all and not just a few...
5:41 I'm so disappointed that there's no real morse message there. :(
Really cool, I would have appreciated a M1-M4 technology approach at some point would have been where he was headed.
I would like to buy this car for three pebbles.
@@Ozzymandius1 , I'll take one and a half if you also give me a hotdog with extra mustard
The word "control" was originally a term used to describe the use of multiple ledgers to verify accounts. That came to mind when you started talking about Bitcoin-etc.
"10's of ..... megabites" that was funny. :-)
I can top that... I've still got some 100MB ZIP disks around here... :-D
@@videotaper2272
I still have 5-1/4" floppies holding - hold on to your solid-state ass - hundreds of _kilobytes!_
@@NoActuallyGo-KCUF-Yourself
I've got 5 1/4 and 3 1/2 inch floppies too. Though most (maybe all) of the 5 1/4 discs are for my Commodore computers.
Very nice intetesting presentation
Him: how much money do u have
Me: £-100
Extremely interesting video
If humanity has reached a point of efficiency where scarcity of economic desires is overcome, money will decline to a similarly symbolic role as today´s monarchies before declining altogether.
Humanity _has_ reached that point. The rich just cling to their imaginary numbers because they show that they have exploited the most workers.
@@lare290 Thank you. Someone needed to say that.
@@lare290 Even if by a miracle all the rich got morals and decided to change that, a majority of people wouldn't want it. Too many have bought into money. It's the poor who want to become rich or at least better than their neighbor or at least better than the homeless guy who wouldn't want the money system to change. The people who wasted their life working for others, making others rich, would be opposed to it, as they would feel cheated. Giving up money would mean they've wasted their life. It's the old people who are used to and have invested too much of their time in this who would opposed to it. They wouldn't want "the moochers", the "social parasites " who haven't worked as much as them or even worse, simply haven't earned as much as them until now, to be suddenly equal. People are petty. Sadly, many don't want others to have it better. They want others to suffer as much as they did or even more. Even the poor like to have someone below them.
So back in the gold smelting and trading times. Would you say whomever smelt it dealt it?
Bitcoin is the hardest money.
No, bitcoin it the most soft as it's software.
Being the easiest money to manipulate, it does a great job at illustrating the utter failures of currency and monetary theory that humans can possibly come up with.
I don't think you grasped how crypto exactly works because lot of your points are just not true.
You can create a paper/hw wallet right now and government has no chance to know your password, if u store your cryptocurrency on an exchange, sure it's a record government can track.
Bitcoin is open-source so patent laws don't apply (Some cryptocurrencies are privately developed, that's a different story)
Why would ANY crypto be backed by physical assets like gold, it doesn't make sense, the value in Bitcoin comes from its limited supply and its deflation.
The transactions depend on supply and demand of miners to users of the network, Bitcoin transaction takes up to 30 minutes, mostly less. Many other crypto projects already delivers sub-second transactions.
Mastercard server can be hacked and friend by EMP. In order to remove records of Bitcoin ledger, you would have to hack/fry EVERY single recond on every device that has the blockchain copy.
Also, there are so called "privacy coins" that work just like bitcoin but the history of transactions is not accessible, so they are private.
@@majkcan Crypto currencies aren't accepted in most locations, so 'companies' operate on the exchange of crypto currencies for fiat currencies.
This demonstrates the problem of crypto currencies that its only valuable when it gets changed into fiat currency, undermining the point of it.
Its value is also a reflection of its trade against fiat currency. Your just adding another level of abstraction to the game, which is pretty pointless.
Its also highly unstable, much more than fiat currency and subject to manipulation which isnt nearly as easy as nominal currency.
The underlying tech is useful in other contexts I grant,but it's a pretty terrible form of money, which is already a terrible idea to begin with.
@@RationalAndFree Bitcoin is supposed to be MONEY meaning something that maintains its value over extended periods of time and NOT a currency you spend day to day. Why? because they're better alternatives to use day to day. Its not competing with the likes of payment processors like visa, mastercard etc but the USD, EURO, YUAN, GOLD etc. its competing with them on having the better monetary principles like not being susceptible to debasement, verifiable scarcity, not being able to be counterfeited, censorship resistant, the list goes on. The "Underlying" tech, the blockchain is just a slow ass database, so without the bitcoin protocol, its relatively useless as centralized servers are better hence why most tech companies dont use the blockchain despite it being around much longer than the idea of bitcoin in the first place.
Morro agree with you
Great!
Quito-Ecuador
2020
He left out MMT: Modern Monetary Theory which brought money into existence from the government decree that you must pay your taxes with my newly created money which is your debt to my services I provide.
Yeah this is often forgotten which I feel is a reason why a lot of people think Fiat currency is more imaginary then it really is. There are consequences for not paying your taxes. And the government only accept you paying it in there preferred currency after all.
@@Cythil ----Yes, and paying your taxes and your house/rent is the measuring stick for all other consumption prices, just as the ond market determines all the prices for all the other financial instruments.
@@stridedeck Also maybe not so odd that a lot of currencies that are not backed up by the government tend to be very unstable.
@@Cythil That's because essentially their debt is towards the U.S. government or the government of the currency (EURO). At the mercy and whims of the foreign government's policies and actions, becomes unstable if they are substantially different from each other. In that situation, the government creating the currency is not vulnerable, the one relying on the foreign currency is!
@@stridedeck Well, I was more referring to crypto and that like. But government that do not have faith in there own currency tend to experience a lot of inflation to. The good old trying to print you way out of debt rather then collect it from you tax payers.
You guys should do a video about how humans could live without money.
money is an unit of accounting. It can be centralized (National fiat currency) or decentralized (gold , cryptos). Both works. With centralized version, the national government taxes you to destroy the money they created, and also spends much resources to fight counterfeit. Also, in this world there are millions of accountants doing their part to balance everything to make sure there is no double spending. Money is a zero sum. One person's spending = another's income. One person's debts= another's savings. It all balances out. If it didn't then why the heck do we even need accountants in this world then?
Bank notes are just promissory notes. Read what it says on them 'I promise to pay the bearer on demand the sum of...' Its just basically an iou, with nothing of value to back it up.
This is why Bitcoin matters