Why Crypto Should (and Shouldn’t) Be Considered as a Form of Currency

Money, Money, Money! All we seem to hear about in the world of crypto is people talking about money as if it’s just another investment. Yes, we all want our crypto assets to increase in value over time, but that’s just one small part of what money actually is.

To truly understand what money is, we need to first define it properly. Money is a unit of account, a medium of exchange, and a store of value.

A unit of account is something we use to measure debts and prices. A medium of exchange is something we use to settle those debts. And a store of value is something we use to preserve wealth over time.

In the world of crypto, the focus is often solely on the store of value aspect of money, with people constantly comparing different cryptocurrencies to see which is the better investment. But what about the other two functions of money? Are crypto assets actually being used as units of account or mediums of exchange?

The truth is, not really.

While some cryptocurrencies like ETH, SOL, and ATOM may be used for internal transactions within their own blockspaces, they are hardly being used as legitimate currencies. And while some NFTs may be priced in their native tokens, these instances are the exception rather than the rule.

To truly understand money and its role in the 21st century, we need to look beyond just its functions and explore its history and context. And for that, I recommend reading “Private Money and Public Currencies, the 16th Century Challenge.”

But for those of us in the world of crypto, there is one project that stands out in its understanding of money – Cosmos.

Cosmos recognizes that we are still figuring out what money means in the 21st century and that experimentation is necessary. Its philosophy of sovereign interoperability allows for this experimentation and opens the possibility for new innovations in the world of money.

While other cryptocurrencies may be fixated on deflation or cheap global compute power, Cosmos and its native token ATOM are focused on the political aspects of money and decentralized governance. This is what truly sets it apart and makes it the leading place for experimentation in the world of money.

But for me, the next step in this experimentation is clear – Cycles. As someone who has studied monetary theory and history extensively, I believe that Cycles has the potential to transform our understanding of money in the 21st century.

So while everyone else is fixated on which cryptocurrency will be the next big store of value, I encourage you to look beyond and explore the possibilities of money with Cycles. The white paper is coming soon – stay tuned.