The Real Value of Currency

On this planet, there exists a constellation.

A constellation that protects you… safeguards your home… and feeds your family.

It is known as the Eurion Constellation.

You can see this constellation almost everywhereon Earth, regardless of the time of year, or whether it is day or night.

But you won’t find this constellation onany star chart or in any astrologer’s book.

Because this constellation has nothing todo with the cosmos.

I just really wanted to use that stock footageof stars and do a cool voiceover for the intro… Yeah.

The Eurion Constellation is a real thing andI’ll get back to it in a moment, but this video is about currency.

So what is currency? First and foremost, it’s a unit of exchange.

That means you use it to get other stuff.

Otherwise you’d be using chickens and Idunno, wood? It’s portable.

So unlike chickens and… wood, you can puta lot of it in your pockets or wallet or bra or whatever… and it’s durable so it’sunlikely to get damaged and lose value while in your pockets or wallet or bra.

It also has to be divisible so that you canpay exactly what is owed without rounding up and overpaying.

First of probably many side notes… in orderto be divisible, they come in different denominations, the same word that used for churches and whilepeople do worship the stuff that’s pretty much where the similarities end.

In both the Euro and the Dollar there areseven paper notes.

The Euro calls them banknotes and they arethe 5, 10, 20, 50, 100, 200, and 500.

The Dollar calls them federal reserve notesand there is the 1, 2 – that’s right, the 2, it’s not some special collector’sitem like your grandma thinks, they make new ones all the time – 5, 10, 20, 50, and 100.

That’s it, there’s nothing higher thanthat anymore.

We used to have a 100,000 dollar bill thatwas discontinued in 1934.

It was only ever used to transfer money betweenbanks, because back in the day the only way to move large amounts of money between bankswas to put it in a safe on the back of a horse and… good luck! When it comes to coins, the Euro has eight.

The 2 euro, 1 euro, 50 cent, 20 cent, 10 cent,5 cent, 2 cent and 1 cent.

Many countries either have or will soon phaseout their 1 and 2 cent pieces because… well I’ll get to that in a second.

The dollar has the dollar coin, half dollar,quarter, dime, nickel, and penny – the bane of many a youtuber.

The American penny is made of copper coveredzinc, and if you melted it down and sold the metals, you would make 1.

5 cents.

The Euro 1, 2, and 5 cents are all made ofcopper covered steel and depending on the country costs around 5.

5 cents to make, whichis why many countries have or are trying to ditch the 1 and 2 and just keep the 5 cent.

The American nickel isn’t doing too welleither, and costs 6.

3 cents to make.

So when it comes to the lower denominationsfor almost all currencies, they cost more to make than they have in value.

Which brings us to the last definition ofcurrency, and one which will make many economists angry at me for saying, it is a store of value.

The reason that will make economists angryis that they will say money is a store of value, and currency is just a representationof value.

I’ll get to why I personally disagree withthat distinction later, but back in the day, our money, if it wasn’t just flat out madeof gold or silver, at least had a real value of gold or silver attached to it.

In the United States we started off on theSilver Standard, a dollar being defined as 24.

056g of Silver.

In 1900, we switched to the Gold Standard,redefining the dollar as 1.

505g of gold.

You could walk into a bank and get that equalvalue in gold in exchange it even said so on the dollar.

But that really kind of holds the currencyback, you aren’t going to have many more dollars in circulation unless you invade somewhereand come across a bunch of new gold.

So combined with the fact that many Europeancountries had already done so, in 1971 the United States likewise abandoned the GoldStandard and let the dollar become free-floating Fiat Currency, which just means that its valueis backed by the government which issued it and nothing else.

So how much is a dollar worth? It’s not worth anything, it’s worth adollar.

It’s worth slightly more than a bag of skittlesor like a third of a gallon of gas.

It’s not pegged to anything like gold orsilver, but you can still go buy gold and silver with your money or currency which… don’t… but again I’ll get to why I thinkthat later.

But since its value is backed by the governmentit is also protected by the government.

In order to protect that value, you have toprotect it against counterfeit.

Now I’m not going to go through every anticounterfeiting measure like the little strip or the watermark or whatever, because everyoneknows about those and they’re boring.

You don’t come here because you wanna betold old stuff, you wanna know new stuff.

So let’s talk about some that you probablydon’t know.

Here’s a favorite among lots of people wholike to ruin movies.

What’s wrong with this scene? Absolutely nothing is wrong with this sceneactually.

I don’t know where this rumor came aboutmoney burns some different color, but it doesn’t.

Defacing or destroying US currency is illegal,and since I’d rather get in trouble for copyright than for burning money, here’ssomeone else’s video where they burn money.

See? It burns the normal fire color.

There’s nothing special about it, it’smade of cotton and linen, it actually isn’t even paper.

But it’s again illegal for people to counterfeitmoney, even in the movies.

So whenever you see money in a movie, it’sreal, it has to be, by law.

I mean, they’re not going to burn moneybut whenever you see it in a briefcase or whatever, that’s real money, at least thetop layer anyway.

That blew my mind when I found that out.

But here’s another one, in my intro yousaw me put a dollar bill in my scanner.

You shouldn’t do that, or any of the otherthings in my intros, but on top of that, you CAN’T do it.

Your scanner or copy machine simply won’tdo it.

Because of the Eurion Constellation.

It was introduced in 1996 and it’s on almostevery paper currency around the world.

Where is it on the 20? Oh, it’s all of the zeros from those random20s everywhere.

Here it is on the pound, and the euro… andyou probably never even noticed it.

The moment your scanner or copier detectsthat constellation, it will stop.

That’s a legally required to be hardwiredinto the machine, you simply can’t do it.

How cool is that?! So now let’s talk about how different currencieswork together.

I know you just rolled your eyes, I promiseit’s not as difficult as you think or as complicated as certain people want you tobelieve.

To start off, let’s use a made up currency,let’s call it the Ferret.

And you want to go on vacation to some lamedeveloping country, once you get there, you have to convert your money into the localcurrency, the Turtle.

Right now, one Ferret is worth… I dunno… 360 Turtles.

It’s like pesos okay, it’s a really lowvalue currency.

But, now that you have brought more valueinto the country, each individual turtle is worth more.

So the next person who wants to come visitwill trade their one Ferret for 357 Turtles.

Then someone from here goes back and it costs355 Turtles for 1 Ferret, which devalues the Turtle *against the* Ferret.

So for the next person it takes 356 et ceteraet cetera.

But this is what those financial experts onthe news mean when they say the dollar lost value against the euro today.

They mean that value has transferred betweentwo currencies, making one more valuable or “stronger” than the other.

Which is why it’s possible to lose valueagainst one currency, but still gain value against another.

But what do they mean when they say that Chinais a currency manipulator? Well now let’s take a look at the real world.

As you should know, the United States hasa trade deficit with China, which means that we send money to China in exchange for goods,but get very little back.

So we are introducing more value into China.

Remember what happened when we exchanged aFerret for a Turtle? The value of the Turtle went up against theFerret.

So the value of the… Yoo-wan? Juan? Yuan should go up with each transaction.

But… it doesn’t.

China keeps the value of their currency artificiallylow to encourage more trade with China.

China.

I’m sorry… I don’t know what it is about the way hesays it, but that’s just funny.

Actually I’m not sorry, I don’t take anyof that back.

Anyway, this could all be avoided if we justhad some sort of universal currency, right? There’d be no more exchange rates or confusion,it would just be simple.

There’s actually no catch here I kinda domean that.

Prime example is the Euro.

The Euro is the universal currency of an entirecontinent.

When I was a kid there were francs, deutschmarks…francs again… kroners? There were a lot of currencies is what I’msaying.

But they all standardized and converted tothe Euro in 2002.

That is the best practical example of a universalcurrency today, and by 2023 the African continent is set to adopt their own universal currencycalled the Afro.

I really, really wish I was making that up,I mean what a horrible name… what’s next, the Amero? I was… kind of kidding.

But that one’s pretty unlikely because peoplelove themselves some dollars.

Many currencies around the world, insteadof pegging their value to gold or silver, peg it to the dollar or the euro, or othertop shelf currencies, because they are relatively stable.

But what about those electronic universalcurrencies, like bitcoin? How does that work? Just like every other currency.

Every time you buy bitcoins, you are increasingthe value of all bitcoins.

When bitcoin first started in 2009, it wasbasically worthless.

In March 2010, someone tried to sell 10,000BTC for $50, and nobody bought it.

A month later, 1 BTC was valued at 0.

003 dollars.

That’s a third of a penny.

Today? Each bitcoin is worth $2,669.

Which means if you could go back in time andbuy that guy’s 10,000 for 50 bucks, you’d now be sitting on well over 26 million.

The only real difference between bitcoin andother currencies is that it exists digitally rather than physically.

It’s worth noting that the vast majorityof “real” currencies like dollars and euros also only exist digitally but that’sa different story for a different time.

You can’t go into a bank and get bitcoinbanknotes.

It only exists in the ether.

So how does it work? First, you need what they call a wallet, again,it’s electronic… basically a fancy online bank account.

Then, you have to buy bitcoin from someone.

You are exchanging your dollars for bitcoins,just like you would any other currency.

So now, they can go take your dollars andspend them wherever, whereas you can really only use your bitcoins at shady online storesand dark web services, at least for now.

Every time there is a bitcoin transaction,you are announcing to the secure bitcoin network all of the information regarding that trade.

Which is then kept on several decentralizedledgers, which are then combined to make the main ledger.

I know that sounds complicated, but it’sreally not though.

There’s no central authority like a governmentor a bank, the people who keep these ledgers or “blockchains” are just other bitcoinusers, known as miners.

Every time a user’s ledger is added to themain ledger, that user is rewarded with 12.

5 bitcoins.

So… a lot of money.

Which is why people volunteer their computingpower to try and mine bitcoins.

I wouldn’t bother though, because of computingpower required to work the cryptography is more than most of us can afford.

The cryptography is hella complicated, andwhile I did take a few classes in crypto because I thought that’s what I wanted to do inthe army I… *I don’t have time to explain why*.

Anyway, every time several hundred thousandledgers are added, the reward gets cut in half, it started at 50 bitcoins and the lastwhole bitcoin reward will likely be mined in the year 2140, and there is a fixed amountof bitcoins in existence, unlike other currencies.

But just like other fiat currencies, bitcoinonly has value because people think it has value.

If people didn’t want to accept bitcoinsas payment and people didn’t want to exchange their other currency for bitcoins, they wouldessentially become worthless.

Or, since there are no physical bitcoins,if there happened to be a solar flare that wiped out all electronics… or the zombieapocalypse were to occur.

In that case though, dollars and euros wouldprobably become pretty worthless too.

So what would the currency be if society collapsed? Many people might say gold and silver.

Because unlike all those fake fiat currencies,gold and silver is real money with intrinsic value.

Is it though? And does it? Aside from some very recent electronic andspace flight applications, gold and silver is pretty intrinsically worthless.

For well over 99% of human history, gold andsilver was only valuable for jewelry because it was shiny.

It’s only valuable because it’s nice tolook at and so people think it’s valuable.

Just like any other currency really.

But that won’t stop people from fear mongeringyou into thinking the dollar will collapse at any moment and they you should invest ingold and silver… by buying it from them.

But they won’t actually send you the goldor silver because that would be crazy expensive and insurance blah blah, no, instead, they’llsend you a certificate saying that they are holding onto some gold in your name.

Definitely nothing shady about that, I’msure that gold will come in real handy when the bombs fall.

Just like bottlecaps.

Oh g… okay, we probably all saw this comingso… go on.

You know my main problem with bottlecaps? Bottlecaps aren’t rare enough to be a currencyand they’re way too easy to counterfeit.

One of the missions in New Vegas is to shutdown a bottling facility that’s being used to counterfeit bottle caps, but is it reallycounterfeiting if they’re also real bottlecaps? Not only that but bottlecaps way 2.

2 gramsapiece, there are some items in the game that cost 20,000 caps, you know how much that weighs? I do because I did the math.

97 pounds! Oh yeah sure, could you just head on downto the grocery store for me? Off you pop! Not only that but old school pre-war moneystill exists in the game, and it still has value!? Why use bottlecaps?! K I’m done.

Okay so really though, what would the currencybe if everything fell apart? If we’re being honest about it, bullets,food, and knowledge.

*knowledge* Take a look at the Walking Dead…or don’t because it’s getting kind of old… and I’m just gonna tell you aboutit anyway.

They don’t use money.

They trade in actual goods and services, smartpeople are valued, guns and bullets, food… the ability to work is the main currency really.

When you really boil it down, the WalkingDead is pure communism.

Everyone just keeps working in order to benefitthemselves and the group as a whole.

And whenever someone acts selfishly and triesto be a capitalist, they’re usually killed off in some horrifying way, sometimes realizingthe err of their ways in their final moments.

So the next time someone tries to tell youto invest in some precious metal because the dollar is going to collapse at any moment,or they tell you that international trade or the value of currency is some great mathematicalmystery, at least now, you know better.

So what do you think the currency in post-apocalyptiawill be? Let me know down in the comments.

And don’t forget to manipulate the valueof that subscribe button… by clicking it.

And in the meantime follow me on facebookand twitter, and join the conversation on the subreddit.

Source: Youtube

The Real Value of Currency

Currency is not some great mystery. Let's discuss what makes a currency, how different currencies work together, and more importantly, what would be the currency if society collapsed?

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Photo Credits -
Euro and Dollar currencies from Wikipedia Commons
Coins and Thumbnail created by Poethewondercat
http://www.offthegridnews.com/wp-content/uploads/2011/01/solar-flare.jpg
http://media.comicbook.com/2016/02/the-walking-dead-survive-1-169975.jpg
http://i41.tinypic.com/16giovn.jpg

Video Credits -
Stock Space Footage from https://www.videvo.net/
The Dark Knight (2008)
Burning the Dollar Bill - Flame On George Washington - david losers - https://youtu.be/QwnZ6uxRacA
Donald Trump Says "China" - HuffPost Entertainment - https://youtu.be/RDrfE9I8_hs
Destiny (2014)
Here In My Garage (Official): Lamborghini, Knowledge, And Books With Tai Lopez - Tai Lopez - https://youtu.be/Cv1RJTHf5fk

Music Credits -
Total Relax 1 Hour Meditation Candle - Davgar Wright-Alty - https://youtu.be/JuSDmsoK4wc
Red Army Choir - Russian Navy Hymn
"Furious Freak" and "Daily Beetle (Edited)" by Kevin MacLeod (incompetech.com)
Licensed under Creative Commons: By Attribution 3.0 License
http://creativecommons.org/licenses/by/3.0/

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