The History of Money (From Barter To Bitcoin)

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  • Опубликовано: 24 авг 2024
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    Money. We all use it. But is it real? I mean, you can touch a coin or bill, but who decided that’s worth anything? And what about all those 1’s and 0’s getting swapped and traded by computers thousands of times per second? How are those worth anything? We trace the history of money, from physical barter to bitcoin, and discover that money isn’t just a lie we all agree to share, it’s been built on the back of technology and invention for millennia.
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Комментарии • 1,2 тыс.

  • @besmart
    @besmart  4 года назад +454

    The history of money isn't just a history of economics. It's a history of technology. Doing a history of technology video was a lot of fun. Let me know what you think!

    • @Person-ng5hp
      @Person-ng5hp 4 года назад +2

      How did you post this 17 hrs ago

    • @zoltan87887
      @zoltan87887 4 года назад +3

      Please do your homework about Bitcoin.

    • @TeunLos
      @TeunLos 4 года назад +2

      The history lesson was cool, but u didn't define imaginary or fiction. Because e.g. one could argue that if you can use money, it's not fiction, its reality. So nice nice story, but it has plotholes :P

    • @EyesOfByes
      @EyesOfByes 4 года назад +2

      I read a Swedish book by an economics journalist "What is money?" (Andreas Cervenka). He begins with (paraphrasing):
      "If a child asks a banker or economics professor what money really is, the adult in question will have a hard time giving an immediate straight to the point answer".
      This video explained it really well though.
      2:35 Fun fact. I was 10 when I saw Dumb & Dumber here in Sweden 🇸🇪. I always thought the pieces of papers where just the plain old receipts. It was not until a few years ago I learned about the technical term "I Owe You". I think the Swedish term is #skuldebrev

    • @luvw.6038
      @luvw.6038 4 года назад

      It was really good keep it up

  • @dimitri_tsm
    @dimitri_tsm 3 года назад +274

    "Money don't grow on trees"
    Well if everyone agreed that Leaves are the currency then it is

    • @chaitanyajagtap964
      @chaitanyajagtap964 3 года назад +6

      Ya that's true

    • @bluelotus.society
      @bluelotus.society 2 года назад +17

      People would be planting trees so quick..

    • @Think_Inc
      @Think_Inc 2 года назад +9

      @@bluelotus.society Brilliant! What’re we waitin’ fo’?

    • @Reynning
      @Reynning 2 года назад +4

      * Laugh at selling fruits *

    • @azraumunir3595
      @azraumunir3595 2 года назад +2

      I don't think you have met Mr Beast

  • @codykillir10
    @codykillir10 4 года назад +1399

    I would be perfectly fine with a random cosmic ray turning my 24$ into 1048$

    • @wholeNwon
      @wholeNwon 4 года назад +19

      $24

    • @imveryangryitsnotbutter
      @imveryangryitsnotbutter 4 года назад +153

      You wouldn't like it if the $24 you paid for groceries suddenly turned into a debt of $1048.

    • @wholeNwon
      @wholeNwon 4 года назад +1

      @@imveryangryitsnotbutter ??

    • @grodt88
      @grodt88 4 года назад +7

      An Angry IS-6 inflation turning your 1000$ into 24$ worth papier in 40 years

    • @steevemartial4084
      @steevemartial4084 4 года назад +18

      It could happen both ways though.

  • @poorplayer9249
    @poorplayer9249 4 года назад +428

    Those Mesopotamians were pretty advanced. The farmer is even wearing what appears to be a modern vision correction apparatus.

    • @weltschmertzz
      @weltschmertzz 4 года назад +11

      Lol you're funny

    • @roninbayacal7857
      @roninbayacal7857 4 года назад

      hhahaahha

    • @darthhades80
      @darthhades80 4 года назад +2

      Well, obviously, he's a time traveller

    • @nuhafatimah4303
      @nuhafatimah4303 4 года назад

      I love ur observation. Lol😂😂😂😂😂😂

    • @brentfisher902
      @brentfisher902 4 года назад +1

      Meaning through the magic of capitalism he gets to pay to use his eyes/are a miracle for low vision hordes.

  • @Mark73
    @Mark73 4 года назад +172

    John Searle has a book called "The Construction of Social Reality" that talks about the kinds of things that are "true" only because humans agree that they are true. Money is one of them. Also laws, governments, sports rules, units of measurement, and more.

    • @nawarelsabaa
      @nawarelsabaa 4 года назад +12

      I haven't read that, but that was also a very prominent theme in Yuval Harari's *Sapiens*

    • @ShezMarvalouz
      @ShezMarvalouz 3 года назад +2

      I need this book!

  • @markbevelock599
    @markbevelock599 4 года назад +154

    So you just covered my entire half-year course in high school in 10 minutes.

    • @ikrar26
      @ikrar26 4 года назад +17

      U learn about history of money in 6 months ?
      Damn u need to talk to ur teacher.. its not efficient

  • @luiztomikawa
    @luiztomikawa 4 года назад +207

    Thumbnail: "I'm not real"
    Me: "Yeah, you're a dollar."

    • @appmenezes
      @appmenezes 4 года назад +8

      But if a Dollar is also 4 Real, is it more real than dollar?

    • @GvinahGui
      @GvinahGui 4 года назад +1

      @@appmenezes *mind blown* 🤣

    • @GiovaniMoreiraG
      @GiovaniMoreiraG 4 года назад +2

      Real means "royal", not "real" lol

    • @TheAliceUwU
      @TheAliceUwU 4 года назад +2

      @@transit-future _spanish?_

    • @seilaessecanalnvaitervideo6414
      @seilaessecanalnvaitervideo6414 3 года назад +1

      @@TheAliceUwU no real is the brasil currency in brasil we speak portuguese not spanish

  • @justcallmeSheriff
    @justcallmeSheriff 4 года назад +341

    So Fallout was right on the money with using bottle caps as a medium of exchange!

    • @girlsdrinkfeck
      @girlsdrinkfeck 4 года назад +14

      not far off from how usa treats money ,so outdated ! i cant beleive in usa they still use cheques and mag stripe cards and wireless payment is rare

    • @justcallmeSheriff
      @justcallmeSheriff 4 года назад +6

      @@girlsdrinkfeck My local bank sent me my chipped card last year. By then, I had already listened to a podcast about how chips will soon be outdated

    • @Vyseblues
      @Vyseblues 4 года назад +2

      @@girlsdrinkfeck we're catching up with the rest of the world. Our cards have changed quite alot in the past few years.
      The mag strip is still on there but it's hardly used anymore. Most card readers use chip pay. Which in most cases you can still enter a PIN.
      Some banks also offer tap pay with their cards in addition with chip and mag strips. My guess is this may be a transitional time period where the old still exists until everyone catches up.

    • @girlsdrinkfeck
      @girlsdrinkfeck 4 года назад

      @@Vyseblues yh we had chip pay since 2002 here and NFC contactless pay around 2015

    • @girlsdrinkfeck
      @girlsdrinkfeck 4 года назад +1

      @@justcallmeSheriff thats why we had chips since 2002 and NFC cards in 2015 for contactless payments , of which over 90% of stores implement

  • @cfltheman
    @cfltheman 3 года назад +64

    For something that is essentially imaginary, people sure do value it very much, even more than the lives of other people.

    • @Accidental26
      @Accidental26 Год назад +3

      What to do tbh, other ppl give u what u need and want by sending them those imaginary numbers

    • @FoodRecipes108
      @FoodRecipes108 Год назад +2

      And i give my life my hours my consciousness for money.

    • @thembamahlangu9028
      @thembamahlangu9028 Год назад

      It is an imaginary medium to get one real things - money buys you land, food, even buys you time, to say it is not real is false

    • @sbsnate2312
      @sbsnate2312 Год назад +2

      Money is an abstract you can exchange for tangent value. It's not imaginary.

  • @albevanhanoy
    @albevanhanoy 4 года назад +119

    "Fewer people = Fewer errors"
    And this, people, is why self-driving cars are inevitable.

    • @Max_Matrix
      @Max_Matrix 4 года назад +6

      And I am Ironm- oh sorry wrong person

    • @liammorgans7329
      @liammorgans7329 4 года назад +2

      Not until they fully upgrade/rebuild the current road systems.
      According to a couple of ai expers that we’re on Rogan, it’s actually very far off, if not impossible due to the mixture of people driving cars and automated cars using the same road.
      I personally would rather take my chances driving my own car around bad drivers than to drive around an ai or be driven by an ai.
      Even if there is technically “less accidents” that’s because most people are bad drivers. I am not a bad driver.
      Self driving cars are a form of communism. The best drivers have the same chance as the worst drivers
      I say let the bad drivers crash so evolution continues

    • @albevanhanoy
      @albevanhanoy 4 года назад +33

      @@liammorgans7329 This is wrong on so many levels.
      No matter how good a driver you think you are, you'll never be as good as an AI.
      An AI has a reaction time of a few nanoseconds. Can you claim the same?
      An AI never feels tired, can you claim the same?
      An AI never feels stressed, never gets sick or drunk, can you claim the same?
      An AI is part of a network of communicating AIs on the road, giving each others real-time information on traffic and their own intentions. Can you say the same about you and other drivers? It's like if a human could be on the phone while driving with every other conductor in the world simultaneously, but without all the problems of being on the phone while driving.
      Also, no, it's not a form a communism, and I have no idea how you can possibly come to this conclusion. There's just not a single link.
      Finally, when you say, "let the bad drivers crash", please dude, have some dignity, you are talking about real human lives. Plenty of accidents have happened to very good drivers. To people just like you. People like you who are now dead, but we can save many more using that technology.

    • @liammorgans7329
      @liammorgans7329 4 года назад +3

      Please read my comment thoroughly before questioning my dignity, thanks.
      I said it’s not possible yet according to ai experts.
      Because the road is a mixture of people drivers and ai.
      If they make a road purely for automated cars, then I will use it.
      But until then, I’m gonna listen to what the ai experts say regarding its flaws due to things ai can’t account for.
      I explained how it’s linked to communism, either argue what I said or don’t, pretty weird to say you don’t see the connection when I just explained it..
      Again, please take the time to read comments before you respond and question someone’s dignity. Very lazy of you.
      just wasting both our time to feel morally superior without actually presenting rebuttals to my actual arguments.
      Time is precious my friend. Show some dignity by considering the time others have to put into conversations too.
      Just joking, I just wanted to question your dignity for jokesies.

    • @albevanhanoy
      @albevanhanoy 4 года назад +7

      @@liammorgans7329 The dignity comment wasn't about your argument, but specifically about the "Let the bad drivers die" comment. That was a really, really untasteful thing to say, and you totally deserved to be called out on it. At least admit it instead of acting all butthurt about it...
      I literally rebutted _everything you said_ and all you can say is "hurr durr you didn't read me." I think it's you who didn't read my rebuttal. An AI _is_ a better driver than you are already. I've explained it. You argument of authority about so called "experts" doesn't hold any ground without a source. The limitations are not technical, they're purely legislative. That's the only reason why they'll take a few years to become the majority of cars at all.

  • @brasil914
    @brasil914 4 года назад +125

    Joe: Money is not Real.
    Me a Brazilian: Hold up.

    • @marcospark610
      @marcospark610 4 года назад +3

      Guess he is wrong there...

    • @jackier.3246
      @jackier.3246 4 года назад

      ikr the first thought that I had

    • @CanalSensum
      @CanalSensum 4 года назад +2

      I didn’t understood... is it cause REAL is the Brazilian money?

    • @marteumar8429
      @marteumar8429 4 года назад +3

      Canal Sensum Sensum channel yeah.. Brasil money is called ‘real’

    • @thenameproblemhasbeenfixed7041
      @thenameproblemhasbeenfixed7041 4 года назад +1

      @@transit-future why are you talking about spanish and it is real.

  • @lenn939
    @lenn939 4 года назад +42

    The ledger of cryptocurrencies isn’t “somewhere in the clouds,” it’s stored on every computer that runs a node in the network.

    • @arthas640
      @arthas640 4 года назад +19

      Yeah but computer run on electricity, and theres electricity in clouds because that's where Zeus stores his thunderbolts when hes busy having sex with random women while pretending to be various wild animals.

    • @WhompingWalrus
      @WhompingWalrus 4 года назад +3

      @imshippyupup Plenty of people misunderstand what it means when something's done "in the cloud". It's literally just someone else's computer, or many of them. Saying BTC is stored "somewhere in the cloud" leaves the average person thinking it's all hinging on trusting some confusing... something, somewhere, that only experts can really understand, and may be of dubious authenticity. The whole point of BTC is that everyone has a shared ledger of it.
      The point of a metaphor is to help someone understand something. If a metaphor is likely to leave the listener with an incorrect understanding of the matter at hand, then it's a bad metaphor. You can clarify the tricky bits of a bad metaphor without hating metaphors entirely.

    • @connorconnor1631
      @connorconnor1631 2 года назад

      r/iamverysmart

  • @SentientMeatbag
    @SentientMeatbag 4 года назад +43

    3:29 Here's a useless fact: this is a 1 cent Dutch guilder coin from The Netherlands. It was discontinued in the eighties, worth about 0.003 USD at the time.

    • @iamdave84
      @iamdave84 4 года назад +4

      Though I imagine the inside of the mould would have appeared as a mirror image of the coin's face... 🤔

    • @RH-xm5uk
      @RH-xm5uk 3 года назад +2

      And this one cent has Queen Wilhelmina on the other side. And this edition, with Queen Wilhelmina on the other side was only issued in one year, 1948.

  • @ed-7-7-7
    @ed-7-7-7 4 года назад +179

    Why am I watching a video about something I don't have lol

    • @tribaltree5381
      @tribaltree5381 4 года назад

      Learn ;)

    • @srpenguinbr
      @srpenguinbr 4 года назад +2

      for the same reason why I watch romantic movies even though I suck at flirting
      jk lol, I hate romantic movies

    • @garethdean6382
      @garethdean6382 4 года назад +12

      You watch pornography don't you?

    • @srpenguinbr
      @srpenguinbr 4 года назад +3

      @@garethdean6382 LMAO, MUCH BETTER EXAMPLE

    • @MrKross-tc9yy
      @MrKross-tc9yy 3 года назад

      You can watch a video about a black hole, but you don't have a black hole! (well, at least, you shouldn't)

  • @emmavg3070
    @emmavg3070 4 года назад +33

    Joe: How money do you have?
    Me: uhh 69 cents, Ah you know what that means, I don’t have enough money for chicken nuggets :(((

  • @JeremyWS
    @JeremyWS 4 года назад +91

    I'm an accountant. Fun fact: the computers that banks use are still glorified calculators.

    • @lajya01
      @lajya01 4 года назад +12

      If it's not broken, don't fix it.

    • @karasu178
      @karasu178 4 года назад +37

      I mean, all computers are glorified calculators...

    • @Cythil
      @Cythil 4 года назад +13

      Yeah. Computers are nothing more then calculators with automatic memory management built in. That is all you need. Able to do arithmetic and logical operations and store those values in some ways.

    • @lajya01
      @lajya01 4 года назад +7

      @@karasu178 I think he meant that banks still use very simple computer programs (COBOL and assembly) from the big mainframe heydays.

    • @GAPIntoTheGame
      @GAPIntoTheGame 4 года назад +2

      HMQ are you assuming their gender?

  • @duchi882
    @duchi882 4 года назад +244

    *Money is a Tool for trade*
    Built mainly on Trust for the Buyer and the Seller
    A Fictional Value valued enough to be true

    • @imveryangryitsnotbutter
      @imveryangryitsnotbutter 4 года назад +13

      Capitalizing the Nouns and Adjectives in my Sentences helps me pretend to seem Highly Educated.

    • @lucasbudega
      @lucasbudega 4 года назад +4

      There's nothing fictional about the favors/goods you can redeem with money.

    • @alexwang982
      @alexwang982 4 года назад +1

      The most valuable thing in the universe!

    • @besser-nicht
      @besser-nicht 4 года назад +2

      @@lucasbudega until the seller do not want this money because no one trust this currency anymore.

    • @sunnyjoseph558
      @sunnyjoseph558 3 года назад

      That fictional thing is more valued than environment. What the ** ? One day we will realise that it is fictional and planet is real.

  • @twinkjamm
    @twinkjamm 4 года назад +44

    Man I thought I was crazy i tried to explain this to my family and they looked at me like 🤔 what are you talking about

    • @33s60
      @33s60 4 года назад +7

      You have a dumbass family then

  • @XinGraves13
    @XinGraves13 2 года назад +3

    This just reinforced my hatred for money. It's not even real, yet it determines virtually every aspect of our lives.

  • @princessnunafart
    @princessnunafart 4 года назад +66

    Why can’t we have these discussions in school instead of how Egyptians stirred the brain?

    • @perseus5056
      @perseus5056 4 года назад +11

      @tzar 1917 no such this as "nonsense" we're all interested in different things

    • @perseus5056
      @perseus5056 4 года назад +7

      @tzar 1917 okay..... So much for entertaining simple minded person

    • @freedomdude5420
      @freedomdude5420 3 года назад +2

      Two words John Rockefeller, I don’t want a nation of thinkers, I want nation of workers.

    • @skysight1553
      @skysight1553 3 года назад +2

      Oh i wanna know how Egyptian stirred the brain

    • @Gal2100
      @Gal2100 3 года назад +2

      I mean all of these school subjects are important, just these discussions need to be added as well. Learning about Egyptians and history help to learn about culture and stops some people being ignorant

  • @zacharysaunders2100
    @zacharysaunders2100 2 года назад +3

    Dad: "Money doesn't grow on trees son!!" Son: "Yes it does, you gotta sell the tree!"

  •  4 года назад +18

    Let's just stop at thinking that gold is valuable. I mean, sure it's somewhat rare, but it's already strange to add an imaginary value to a piece of metal found in the ground. Money itself is not that different from it.

    • @selvasuriya001
      @selvasuriya001 4 года назад +5

      Anything human want becomes valuable :D

    • @2111jade
      @2111jade 4 года назад

      Yeah. How is gold considered valuable. Yeah. They say it's rare but like so what? Why after that? Like why is a hundred pounds of gold worth X amount of dollars in the 16 hundreds vs a hundred pounds of gold being worth X amount of dollars in 1986?

    • @shaunpcoleman
      @shaunpcoleman 2 года назад +2

      @@2111jade Because gold is shiny! People are like crows, we like shiny things,

  • @thatswhat-she-said5881
    @thatswhat-she-said5881 2 года назад +5

    It's so complicated yet so simple

  • @Oosystem
    @Oosystem 4 года назад +62

    The problem now, is people forgot "money" is nothing without the "real things".

    • @BlackBanditXX
      @BlackBanditXX 4 года назад +8

      Except while what's being traded are sometimes physical goods, what the money stands in for isn't so much the goods themselves, but the labor that went into making them. Really, money is labor.

    • @Sanntii7
      @Sanntii7 3 года назад +1

      @@BlackBanditXX no

    • @allhumansarejusthuman.5776
      @allhumansarejusthuman.5776 3 года назад +5

      @@BlackBanditXX no.
      It should be representation of value or labor but it is not.
      Otherwise you would be paying about 2 grand for a brand new luxury car. Thats a high end cars labor value, about 2 grand.

    • @stephenolan5539
      @stephenolan5539 3 года назад +2

      @@allhumansarejusthuman.5776
      Not if you consider things such as the labor involved in making the smelter to smelt the metal to make the car.

    • @NoActuallyGo-KCUF-Yourself
      @NoActuallyGo-KCUF-Yourself 3 года назад +1

      @@stephenolan5539
      That was already paid for before the car manufacturer received the metal parts.

  • @terohannula30
    @terohannula30 4 года назад +4

    Money as a social construction, it is not "real" but socially accepted as one. Though it has it's artefacts, it doesn't exist outside human conventions, The meaning is emitted by humans. This holds for many other phenomenon.

  • @helder1340
    @helder1340 4 года назад +4

    The success of this channel is proportional to the intelectual value that it delivers.
    I'm glad that those fiat currencies and technologies allowd me to watch your content.

  • @42_10_
    @42_10_ 4 года назад +43

    Joe : How much money do you have?
    Me : what money? I'm broke as a joke man

    • @AfrahAfzal1997
      @AfrahAfzal1997 4 года назад +2

      It's all make pretend anyway. If the ones controlling the world nullify the value of paper currency, we're all gonna be broke.

    • @1984Logic
      @1984Logic 4 года назад

      @@AfrahAfzal1997 Or Rick Sanchez

  • @wholeNwon
    @wholeNwon 4 года назад +4

    In the stone age, I used a kind of high speed camera that had a 16K (yes, K) HDD. It was huge, took about 5 min. to spin up to operating speed and cost $30,000 ! Amazing how far we've come.

  • @SaberStrike-p2
    @SaberStrike-p2 4 года назад +60

    I have exactly 70 cents (AUD) which means I can only afford exactly one soft serve from maccas.

    • @jerry3790
      @jerry3790 4 года назад +10

      Assuming the machine is not broken

    • @Versuffe
      @Versuffe 4 года назад +1

      Jerry Rupprecht always is go to kfc mate it’s opposite of mc Donald’s good always works it is positive

    • @SaberStrike-p2
      @SaberStrike-p2 4 года назад +2

      There's an ice cream machine at kfc?
      I've never seen one before...

    • @jonathanspaulding3771
      @jonathanspaulding3771 4 года назад +2

      Wtf is a macca?

    • @penguin-tc1cx
      @penguin-tc1cx 4 года назад +2

      Jonathan Spaulding It’s a nickname for McDonald’s said by Australian people, kind of like how people will say Mickey d’s or mcd’s etc

  • @Fausto_moh
    @Fausto_moh 4 года назад +4

    I'm sitting here balancing my accounts and transferring money between banks like its nothing and in fraction of seconds, all while watching this video and it blew my mind. What a time to be alive.

    • @gjfkhvjzjsxbq
      @gjfkhvjzjsxbq Год назад

      This did not age well...

    • @cats11111
      @cats11111 Год назад

      @@gjfkhvjzjsxbq yeah banks arent doing great rn

  • @avkashpanwar3847
    @avkashpanwar3847 3 года назад +5

    I love how in 7:31, the binary number is actually 24 without the 1! It's Ok to Be Smart has great attention to detail!

  • @supaflylob
    @supaflylob 4 года назад +46

    this is actually the best explanation for cryptocurrency ive ever seen

  • @JoeNoshow27
    @JoeNoshow27 4 года назад +7

    The technology changes, but the dynamics stay the same. A currency invented by powerful people who force us to believe the currency itself actually matters.

  • @RicardoPetinga
    @RicardoPetinga 4 года назад +9

    Thousands of years developing ways to use it more efficiently and now we have to abolish it. Could have spent that time actually building an equitative and horizontal decentralized society, but alas, better late than never. At least we now have the means to not have to worry about scarcity. You know, other than capital-imposed scarcity.

  • @VforVanish
    @VforVanish 4 года назад +3

    Would be cool to explain what is inflation and why it matters.

  • @scudder991
    @scudder991 4 года назад +9

    Fascinating & engaging summary for how money came to be and how it works. Thank you!

  • @veganchaatparty
    @veganchaatparty 4 года назад +6

    Joe, you are super awesome...you can't make this any simpler....beautifully explained, amazing scripting and editing.....super awesome and super thanks!!!!

  • @nyxlawal9105
    @nyxlawal9105 4 года назад +3

    Money is basically something we invented to satisfy our selfishness. If we didn't expect things in return from others after doing them favours; money wouldn't exist, as we wouldn't need a way to record how much and how many people owes us things. Not to say that money isnt important(I mean it helped the human civilization advance and will help it future advance), but it was something we invented just to ensure we somehow, get back the things that others owe us.

  • @jaydon225
    @jaydon225 4 года назад +20

    "Nigerian Prince". My Nigerian heart is broken!!! 😭😭

  • @DeRien8
    @DeRien8 4 года назад +13

    It's just too convenient. Every time I try to do a thought exercise for a society without currency starting from necessity barter (because without specialization, society moves at a creeping pace) it just gets too complicated not to develop and use a system of representative value.

    • @PJ3232PJ
      @PJ3232PJ 4 года назад +1

      what if everything is from everyone? no need to barter

    • @DeRien8
      @DeRien8 4 года назад +7

      @@PJ3232PJ at least on current Earth, natural resource availability is not uniform, and neither is individual need/want for items or services. If we tweak the scenario to remove scarcity and include an unlimited labor force, the solution becomes less practical. Maybe the biggest problem is just human greed and consumption

    • @besser-nicht
      @besser-nicht 4 года назад

      its easy but not now. Because we have to do things to get things.

    • @zs9652
      @zs9652 4 года назад +4

      Yeah the only way a society without money evolves is for that society to be comprised of aliens with a psychology leaning towards group think/hive mind.

  • @gyozakeynsianism
    @gyozakeynsianism 4 года назад +4

    Joe - this is great! You are branching out into the scienceverse of Sciencenomics!
    One thing I should mention is that we can't trade in gold for dollars because we left the gold standard in 1933. Before then, consumers really could take dollars to the government and trade them in for gold (and vice versa), which played an important function in the maintenance of the value of the currency against other currencies. It's a kind of very, very conservative monetary policy (which may have also cased the Great Depression - just sayin'). You can read the whole fascinating story in works by Barry Eichengreen of UC Berkeley, particularly "Globalizing Capital."

  • @CarFreeSegnitz
    @CarFreeSegnitz 4 года назад +30

    Modern monetary theory: why have we agreed on a particular currency? The theory suggests it's because a central authority wants you to pay them in that currency. Now everyone wants a bit of that currency so they can pay the central authority.

  • @rainynight02
    @rainynight02 4 года назад +27

    Except technology isn't why money exists.
    Money exists because humans needed a means of exchange other than direct trade of goods.
    Technology enhanced and made money more usable, but it didn't create it.

    • @RationalAndFree
      @RationalAndFree 4 года назад +1

      Other means of exchange can be done which do not require money. Many societies have operated without money but instead operated upon something simular to gift economies.
      Money isn't intrinsic nor a requirement to operate economies of scale. It's just the most deployed.

    • @pedrolmlkzk
      @pedrolmlkzk 4 года назад +3

      @@RationalAndFree those societies were not complex enough to need money, when you get to a certain degree of economic development money is indeed needed

    • @RationalAndFree
      @RationalAndFree 4 года назад +2

      @@pedrolmlkzk that's goes against the historical records.
      Also,economic development is just a fancy way of saying haven't gotten the same sense of value as us. Using your own culture as a the basis of what is considered the end goal is both entirely circular and also pretty colonialist in its underlying assumptions.

    • @bradmodd7856
      @bradmodd7856 4 года назад

      Well, if the wheel and the spoon are invented technology, money is too. So there goes your argument. My work here is done.

    • @gg3675
      @gg3675 4 года назад

      1) that’s technology. Saying technology didn’t invent agriculture, the human need to have a stable source of food did wouldn’t really be right. These things *are* technologies. 2) direct trade of goods isn’t really how Paleolithic economies worked. The exchange was basically a pretty complicated social network of shared reliance’s rather than “you give me shoes and I give you a shirt” barter.

  • @ems7623
    @ems7623 2 года назад +2

    It's amazing how much we allow such an arbitrary system to govern our lives and values

  • @landopolaroid9157
    @landopolaroid9157 4 года назад +36

    Me: praying some cosmic force somehow changes my balance on my bank account to millions of dollars accidentally.

  • @user-qq4zb1yt5r
    @user-qq4zb1yt5r 4 года назад +9

    Thank you for the great video :) I recently visited one of the money printing facilities in Fortworth Texas, and the experiences was absolutely mind blowing. It made me think about what really is money and what's all about it.
    Ih and by the way, at 4:49 when the 12th century Chinese economy is explained, a Japanese drawing was used in the video.

    • @helldronez
      @helldronez 4 года назад

      thats kind of racist jokes but okay xD i am asian too, i am Indonesian

  • @TunkPotterSV
    @TunkPotterSV 4 года назад +1

    Nice to see a great channel endorsing another great channel

  • @erfanpurnama
    @erfanpurnama 3 года назад +1

    Joe: "How much money do you have?"
    Me: "Is this personal attack or something?"

  • @tamago1704
    @tamago1704 4 года назад +29

    "how money do you have?"
    DONT ASK!

  • @tribaltree5381
    @tribaltree5381 4 года назад +8

    I may have gained braincells now

  • @The_Viscount
    @The_Viscount 3 года назад +1

    Money does not define a person's character worth. All it defines is the power you have in society.

  • @oliver_siegel
    @oliver_siegel 4 года назад +1

    Wow this was the best RUclips video I've seen in a while!!! Thanks for this mind-blowing information

  • @NuggetsNews
    @NuggetsNews 4 года назад +26

    And now we have Bitcoin. The first money governments & banks can't control :)

    • @georginahayes3505
      @georginahayes3505 4 года назад +3

      Technology & innovation meets money!

    • @rolfs2165
      @rolfs2165 4 года назад +3

      Banks and governments having no control over cryptocurrency is all nice and dandy, as long as things work. But I prefer to have my (admittedly rather small) monetary wealth in a currency where I'm guaranteed by law to get a certain amount of it back, should the bank ever go bankrupt. Instead of it all just vanishing into the digital aether.

    • @NuggetsNews
      @NuggetsNews 4 года назад +1

      @@rolfs2165 that's fair enough. But it hasn't worked out well for those in pretty much every country other than the US whose purchasing power is either being gradually eroded or abruptly hyperinflated. I choose to park money in the more scarce system (Bitcoin) which has gone up in value 98% of it's existence & will continue to do so over time vs fiat currency.

    • @voteforno.6155
      @voteforno.6155 4 года назад +1

      Bitcoin is not money.

    • @NuggetsNews
      @NuggetsNews 4 года назад

      @@voteforno.6155 I've been paying every bill I have in Australia for 4 years with bitcoin. Works pretty well here as money mate. :)

  • @MilkyMailman
    @MilkyMailman 4 года назад +22

    Yoooo finally someone recognized yap!! My home island

  • @ArlenKundert
    @ArlenKundert 4 года назад +2

    Awesome of you to plug “Two Cents”. They’re awesome!

  • @jandideriksen7847
    @jandideriksen7847 4 года назад +9

    "10's of ..... megabites" that was funny. :-)

    • @videotaper2272
      @videotaper2272 3 года назад

      I can top that... I've still got some 100MB ZIP disks around here... :-D

    • @NoActuallyGo-KCUF-Yourself
      @NoActuallyGo-KCUF-Yourself 3 года назад

      @@videotaper2272
      I still have 5-1/4" floppies holding - hold on to your solid-state ass - hundreds of _kilobytes!_

    • @videotaper2272
      @videotaper2272 3 года назад

      @@NoActuallyGo-KCUF-Yourself
      I've got 5 1/4 and 3 1/2 inch floppies too. Though most (maybe all) of the 5 1/4 discs are for my Commodore computers.

  • @vasectomyfail442
    @vasectomyfail442 4 года назад +13

    who else remembers the graphite "chunk-chunk" machine that made copies of your credit card in the 80s ?

    • @AdrianParsons
      @AdrianParsons 4 года назад

      The company I worked for (starting in 2000) had them on hand as a back up in case the power went out. I lost power enough times over the years but never got to/had to use the imprinter.

    • @brentfisher902
      @brentfisher902 4 года назад

      That would be a way to use credit cards in a world without gunpowder, engines, or electricity.

    • @allhumansarejusthuman.5776
      @allhumansarejusthuman.5776 3 года назад

      Yup!

  • @AngryKittens
    @AngryKittens 4 года назад +10

    I would like to buy this car for three pebbles.

    • @GvinahGui
      @GvinahGui 4 года назад

      @@Ozzymandius1 , I'll take one and a half if you also give me a hotdog with extra mustard

  • @khoichau8316
    @khoichau8316 3 года назад +4

    Great video! I never made the connection between how the development of money has always been linked to advances in technology

  • @BThings
    @BThings 4 года назад +2

    This is focused on money, but it makes you think about all the other arbitrary things we make up but attribute value to, like the little squiggles of writing, or even the sounds of vocalized language itself. I love the abstractions that help civilization function! ☺️

  • @Ceelvain
    @Ceelvain 4 года назад +5

    5:41 I'm so disappointed that there's no real morse message there. :(

  • @tachiebillano6244
    @tachiebillano6244 4 года назад +3

    “Shared delusions of value.” Love it.

  • @MasterGeekMX
    @MasterGeekMX 4 года назад +1

    Even some videogame "currencies" have a sort of real value exhange rate, like second life's dollars, World Of Warcraft gold, even Team Fortress 2 crate keys and metal scraps.

  • @evilhenny
    @evilhenny 3 года назад +1

    Really cool, I would have appreciated a M1-M4 technology approach at some point would have been where he was headed.

  • @icedcoffee8561
    @icedcoffee8561 4 года назад +13

    surely this video will collapse the economy... I'm waiting

  • @seanp4644
    @seanp4644 4 года назад +4

    A really great book I'm reading right now talked about this 2 chapters ago from where I am, it's called Sapiens, and it looks at the history of humanity through different aspects as humans gained control of the planet. I would definitely give it a read, the money chapter in particular was super super interesting

  • @scibanana3542
    @scibanana3542 2 года назад +2

    Fun fact: the first Egyptian writings were used for counting taxes.

  • @richardcaldwell6159
    @richardcaldwell6159 4 года назад +2

    Great, as always. Note that cryptocurrencies consume a huge amount of electricity. Towns with loads bumping up against capacity have had to limit or ban mining.

  • @tigerstudios
    @tigerstudios 4 года назад +4

    This is a great video!! I always knew that money was represented by gold, but I learned a lot more from watching this video.
    Thanks!!

  • @petshopcacao
    @petshopcacao 4 года назад +3

    Since i’m a child i always thought that money was not real and if we decided that our new money was rocks i’d be rich.

  • @guitarheroprince123
    @guitarheroprince123 4 года назад +1

    Calling bitcoin _just_ money is like calling the internet a fancy telephone. Its world's first transnational open permissionless programmable money.
    A post office couldn't stream this video. It's the internet of money.

    • @guitarheroprince123
      @guitarheroprince123 4 года назад +1

      @@rob-fb5xs cash is going away and for countries like hong kong and Venezuela where the entity you're fighting is the government, you cannot use banks. So you have to use bitcoin.

    • @SAL-fs1mr
      @SAL-fs1mr 4 года назад +1

      @@rob-fb5xs if you watched the video, monetary value is always subjective.

  • @ront9063
    @ront9063 4 года назад +1

    Also just the fact that there is an exchange for what value is it's an amount of work that a person does to give value

  • @danidosie
    @danidosie 4 года назад +13

    Thank you for these amazing educational videos! I practice my English listening comprehension skills and i learn soo much!☺️

    • @va7sab
      @va7sab 4 года назад +1

      left lots out like the fed reserve and its all being run criminals ....

    • @LolSnimci
      @LolSnimci 4 года назад +1

      Im also on the train but for German language.

    • @wholeNwon
      @wholeNwon 4 года назад

      these

    • @danidosie
      @danidosie 4 года назад

      @@wholeNwon thank you for correcting me

    • @wholeNwon
      @wholeNwon 4 года назад +1

      @@danidosie You're welcome. I always found it very helpful when others corrected my French, German and English.
      Often the important subtleties of syntax, grammar and diction still escape me.

  • @stridedeck
    @stridedeck 4 года назад +9

    He left out MMT: Modern Monetary Theory which brought money into existence from the government decree that you must pay your taxes with my newly created money which is your debt to my services I provide.

    • @Cythil
      @Cythil 4 года назад

      Yeah this is often forgotten which I feel is a reason why a lot of people think Fiat currency is more imaginary then it really is. There are consequences for not paying your taxes. And the government only accept you paying it in there preferred currency after all.

    • @stridedeck
      @stridedeck 4 года назад

      @@Cythil ----Yes, and paying your taxes and your house/rent is the measuring stick for all other consumption prices, just as the ond market determines all the prices for all the other financial instruments.

    • @Cythil
      @Cythil 4 года назад

      @@stridedeck Also maybe not so odd that a lot of currencies that are not backed up by the government tend to be very unstable.

    • @stridedeck
      @stridedeck 4 года назад

      @@Cythil That's because essentially their debt is towards the U.S. government or the government of the currency (EURO). At the mercy and whims of the foreign government's policies and actions, becomes unstable if they are substantially different from each other. In that situation, the government creating the currency is not vulnerable, the one relying on the foreign currency is!

    • @Cythil
      @Cythil 4 года назад +1

      @@stridedeck Well, I was more referring to crypto and that like. But government that do not have faith in there own currency tend to experience a lot of inflation to. The good old trying to print you way out of debt rather then collect it from you tax payers.

  • @SerenityFeueropal
    @SerenityFeueropal 4 года назад +2

    Great video! Care to make one about where new money comes from?

  • @sheddingmyvelvet
    @sheddingmyvelvet 4 года назад

    i swear pbs digital has some of the best channals on youtube ever

  • @maindepth8830
    @maindepth8830 4 года назад +4

    Him: how much money do u have
    Me: £-100

  • @ke5112
    @ke5112 4 года назад +4

    Well done. I would love to see a basic financial literacy channel along the same style lines as your science videos. Kids - and adults - need it desperately as it is neglected in schools.

    • @ydderynnad
      @ydderynnad Год назад

      The Plain Bagel (Richard Coffin) fits that bill.

  • @margodeheij8976
    @margodeheij8976 Месяц назад

    I was very surprised to suddenly see an ancient Dutch guilder cent in your film. I still have some of those in a jar somewhere, along with stuivers, dubbeltjes, kwartjes and guldens from when we changed to euros. Of course, cents hadn't been used by then for quite a while, since making a cent cost 3 cents lol. Nostalgia :)

  • @SmartVideosJarkaWatched
    @SmartVideosJarkaWatched 2 года назад

    The word "control" was originally a term used to describe the use of multiple ledgers to verify accounts. That came to mind when you started talking about Bitcoin-etc.

  • @scienceforalll
    @scienceforalll 4 года назад +3

    What is money 💰 ? I had this question all my life. Thank you for explaining it 😊
    Can you make a video on how to do reascerch on any topic it will be really helpful 😁

  • @damianlow302
    @damianlow302 4 года назад +5

    this video creates some fascinating philosophical and sociological questions.

  • @benparkinson8314
    @benparkinson8314 4 года назад +1

    Very interesting indeed. With the notion of stored value coupled with the notion of intrinsic value there could be a management solution... Hmmm how to negotiate this idea into non-fiction?...

  • @nehadjm
    @nehadjm 4 года назад +1

    It was a different time! So funny and so accurately describes the whole video

  • @aricre8886
    @aricre8886 4 года назад +4

    "money isn't real"
    Brazilians: HAHA jokes on you

  • @FrostedSapling
    @FrostedSapling 4 года назад +8

    Why you gotta ask such a depressing question at the start, I’m trying to relax

  • @particlemass
    @particlemass 4 года назад +1

    You guys should do a video about how humans could live without money.

  • @jakegordz101
    @jakegordz101 2 месяца назад

    Anyone else watching in 2024 and reminiscing about the channel being called it's okay to be smart instead of just be smart the nostalgia is real yo

  • @globaldigitaldirectsubsidi4493
    @globaldigitaldirectsubsidi4493 4 года назад +15

    If humanity has reached a point of efficiency where scarcity of economic desires is overcome, money will decline to a similarly symbolic role as today´s monarchies before declining altogether.

    • @kauhanen44
      @kauhanen44 4 года назад +15

      Humanity _has_ reached that point. The rich just cling to their imaginary numbers because they show that they have exploited the most workers.

    • @RicardoPetinga
      @RicardoPetinga 4 года назад +2

      @@kauhanen44 Thank you. Someone needed to say that.

    • @maythesciencebewithyou
      @maythesciencebewithyou 4 года назад +4

      @@kauhanen44 Even if by a miracle all the rich got morals and decided to change that, a majority of people wouldn't want it. Too many have bought into money. It's the poor who want to become rich or at least better than their neighbor or at least better than the homeless guy who wouldn't want the money system to change. The people who wasted their life working for others, making others rich, would be opposed to it, as they would feel cheated. Giving up money would mean they've wasted their life. It's the old people who are used to and have invested too much of their time in this who would opposed to it. They wouldn't want "the moochers", the "social parasites " who haven't worked as much as them or even worse, simply haven't earned as much as them until now, to be suddenly equal. People are petty. Sadly, many don't want others to have it better. They want others to suffer as much as they did or even more. Even the poor like to have someone below them.

  • @eviladmiral
    @eviladmiral 4 года назад +3

    I have a background in finance/economics, and 1) this was a great, factually correct video; 2) can you guys please, please release a t-shirt with that “magic of accounting” graphic from the end of the video? Thanks!

  • @nathanaelimmanuel5762
    @nathanaelimmanuel5762 4 года назад

    lmaooo love how you included that fun fact about yap!!! here is another fun fact their stone money was cut from quarries that are on my island (Palau) and then transported via outrigger boats to yap, another fun fact, us Palauans use clay beads that were given to us by the Spanish conquistadors in the 1500s they were used as door curtains and strung in long rows. their worth is determined by their size and color (in order from most valuable to least Yellow, Orange, Red, Blue, and Green.) our women wear them as necklaces and they are given from their husband's family as a sort of dowry. and you (traditionally) could only marry within your social/village class.

  • @shadfurman
    @shadfurman 4 года назад +2

    "Made up" sounds arbitrary. A chair is "made up" but it's not arbitrary. And there's something very natural in the evolution of technology as well as the evolution of value exchange.

  • @issamkayssi9187
    @issamkayssi9187 4 года назад +6

    Read Saifedean Ammous' The Bitcoin Standard

  • @fabycho6791
    @fabycho6791 4 года назад +3

    Money is like a human accident that went too far and I love it 😂

    • @brentfisher902
      @brentfisher902 4 года назад +1

      The only reason money is worth something is because the poor don't have any.

  • @azizbek1204
    @azizbek1204 7 месяцев назад

    I am very amazed that you could explain money from a scientific perspective and did not have to touch on economic theories.

  • @mrzack888
    @mrzack888 4 года назад +4

    money is an unit of accounting. It can be centralized (National fiat currency) or decentralized (gold , cryptos). Both works. With centralized version, the national government taxes you to destroy the money they created, and also spends much resources to fight counterfeit. Also, in this world there are millions of accountants doing their part to balance everything to make sure there is no double spending. Money is a zero sum. One person's spending = another's income. One person's debts= another's savings. It all balances out. If it didn't then why the heck do we even need accountants in this world then?

  • @tomrulz444
    @tomrulz444 4 года назад +15

    Long Bitcoin
    Short the Banks

  • @Mariopreciado
    @Mariopreciado 4 года назад +5

    Thanks, very interesting, and I am learning some Korean with the subtitles ;)

  • @MADEROGIROD
    @MADEROGIROD 3 года назад +1

    You forgot too mention that money is a certificate for work, imaginary money is the money invented without work and therefore debts. If money is not work or debts you get hiperinflación. Why do Bitcoin increase of value? Great video just add this kind of clarification

  • @Hortonscakes
    @Hortonscakes 4 года назад +1

    Haha! Love the catan reference 💯💯💯