Friday, May 30, 2014

The problem with money today

Money is not necessarily currency.

Money is a promise to deliver value, although it might have value unto itself.

The description of value is not money.


Two major problems with today's monetary systems:
1. language differences create misinterpretations of value.  Also, sometimes a value transfer has cultural implications that are not explicitly described.  Language differences exist between countries and between vocations.  Accountants, finance, legal, bankers, computer, and business people might use the same words, but none really understand the unintentional mis-communications.
2. language and cultural differences allow a few to deliberately create ambiguity to leverage a theft that is difficult to detect.

A common language to describe transactions eliminates the mis-communications, whether deliberate or not.

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