Eggs Are Not Dairy; Crypto Is Not Money (Only Gold Is)

Apparently, the marketing displays (DAIRY AND EGGS) in retail grocery stores still have shoppers and consumers convinced that “eggs” are “dairy”. After several decades, why would they not believe it? It does not matter whether or not there was a purposeful intention behind the practice; the two separate products are not linked or related except for the convenience of refrigeration and location for shoppers.

I’m not going to pursue the matter further except to highlight that dairy products (milk, yogurt, cheese(s)) originate from the milk of certain mammals (cows, goats, sheep, camels), and eggs come from chickens. Chickens are birds. Cab Calloway said it best: “A Chicken Ain’t Nothing But A Bird”. A bird is not a mammal. And it does not matter which came first – the chicken or the egg.

When it comes to cryptocurrencies (Bitcoin, Ethereum, Ripple, etc.), the marketing has been purposeful and misleading with the intention of convincing investors, consumers, and pretty much everyone that cryptocurrencies are money. The most egregious example of this concerns Bitcoin, which has been marketed from the get-go as money and a potential substitute for the U.S. dollar. Bitcoin has also been termed by some “a better store of value than gold”.

These claims are repeated nonstop by marketers and proponents. High-profile pitches by celebrities and insane statements and endorsements by wealthy individuals have helped normalize the concept and belief that crypto is a last chance for monetary stability and financial survival. That is not true.

CRYPTO IS NOT MONEY

For cryptocurrencies to be considered money, they would need to function as a measure of value. For example, how many bitcoins will your next car cost? How much ripple will you need to purchase the new dress you want?

We don’t know because there is no reasonably reliable application of value for bitcoin and other cryptocurrencies. In other words, how much is Bitcoin worth? Who knows? At least with US dollars – for the time being – they serve as a medium of exchange and a measure of value.

Bitcoin and other cryptocurrencies cannot be termed stores of value, i.e., stable purchasing power. There is no history of sufficient length to provide evidence of that. Sufficient evidence would require centuries. In this regard, gold is the only real money because it is a proven store of value. (see Is Bitcoin Money? Does It Have Value?)

CONCLUSION

Bitcoin and other cryptocurrencies offer a process for the private transfer of money. The decentralized tracking system (blockchain) offers freedom from regulatory oversight and potential taxation. However, these benefits might not last much longer. (see The Rush To Regulate Crypto)

Cryptocurrencies cannot be stores of value (purchasing power) because they have no intrinsic value and no history to support that kind of claim.

In addition to acting as a medium of exchange and a measure of value, gold is a proven store of value; the three characteristics that make gold “real ” money.

Gold’s value is in its use as money – real money. That is just as true today as it was centuries ago. (also see Gold’s Singular Role)