PRIVATE CURRENCIES MAY BE THE FUTURE OF MONEY
We all think we know what money is, but economists have many different definitions of money (e.g., M1, M2, M4, and others) -- and the problem is getting worse.
One basic function of money is to serve as a store of value. Because the dollar and all of the other government fiat currencies (those without backing of real assets like gold and silver) have proven to be unreliable as a store of value, the dollar as a global currency is less useful and efficient than it should be.
The United States and most of the other developed countries have also been engaged in a global war on financial privacy, which in practice, means that governments are demanding access to everyone’s accounts and transactions.
Those who value their financial privacy as a way of protecting themselves from corrupt governments, institutions and individuals (and the criminal class) have a strong incentive to use private money-like products, such as bitcoin, which may provide them with more privacy.












