Crypto vs Stocks: A Comparison for 2021
Crypto vs stocks: which is best for you? This guide provides a complete comparison of investing in cryptocurrency and investing in stocks.
Every monetary system in the last 5’000 years consists of the base-money and of the credit-money.
Initially, the commodities (wheat) was used as a base-money, then gold and silver. After that, we entered the phase where the sovereign started to mint their own base-money. Nowadays we are in the central banking system, where the governments are not allowed to create the base-money anymore, but they have delegated this to the central-banks.
Credit-money has existed 5’000 years as well – first instances are known from the Mesopotamia. Credit-money was created in the decentral peer-to-peer transactions for thousands of years and it was destroyed when the loans were paid back. Credit-money is, in essence, transferable debt obligation – a bearer note.
Let’s think again – commodities, which were not manipulatable in quantity were used as a base-money; and the credit-money was created in the peer to peer transactions. There was no government involvement, only the functioning court system was required.
First commercial banks started to emerge 350 years ago. Soon the banks started to issue their private credit-money, but later, with the introduction of central banking the private credit-money was replaced with the centrally controlled credit-money.
The monetary system started de-centrally, but it has transferred to a fully centrally controlled system. The thesis of SmartCredit.io is that the blockchain will enable the shift to the decentral monetary system again.
This thesis is based on transaction cost analysis:
Decentral credit-money was the initial monetary system
Private credit-money followed because it’s production was with lower transaction costs
Then centrally controlled credit-money followed (our current system) because it had even lower transaction costs
However, the blockchain has lowered transaction costs even more. Our thesis is that the next version of the credit-money will be based on the decentral blockchain because of lower transaction costs compared to the central credit-money.
Crypto vs stocks: which is best for you? This guide provides a complete comparison of investing in cryptocurrency and investing in stocks.
We wrote lately an analysis in our medium post asking that ”Is the Blockchain-based alternate financial system ready to be used?” Here is the summary
Fiat versus Bitcoin – which one is better? Our current monetary system is a fiat money monetary system. Central banks are creating the base-money and
Central banks have lowered the interest rate and are running massive Quantitative Easing as a response to the coronavirus crisis. But why is the interest
Coronavirus economic crash has followed the coronavirus lockdowns. The stock markets have crashed worldwide. It’s not only that the stock markets have crashed, but practically
In the previous article, we looked at what influences the fiat interest rate in the fiat-money based economy. The focus of this article is the
In every monetary system, there is interest – the price to be paid for using someone else money. In this article, we will focus on
We presented at the Blockercon Conference in Bristol in June 2019 our favorite topic – Crypto Credit-Money – Why do we need it? Presentation Here are
Meet the Big Blue Elephant in the room. Today, the world is to a big extent influenced by the wealth pyramid so that 1% of
During presentations about money, we usually hear that money has to be durable, portable, divisible and fungible. We fully agree with this distinction.
In the previous article, we looked at the two dimensions of money — base money and credit money. We also looked at the different kind of monetary systems that existed in the last 5’000 years and possible scenarios for the future.
I was presenting on 28th of November 2018 at the moontec.io conference in Tallinn, Estonia about the monetary systems and about why one will need credit money in the crypto sector.