Finance

Commodity Backed Money vs Fiat Money

If you have spent any time around financial circles, odds are you have heard the two terms commodity money and fiat money. While both are types of money, commodity money and fiat money are differentiated based on what they represent and what grounds their value. Let’s first start with some basic definitions, and then proceed to break down their histories, as well as the pros and cons…
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Finance

The Importance of Credit Creation: How Banks Create Money

Money is one of those objects caught up in an existential duality. We create money, we give value to money, and money only has value because humans believe it to have value. If tomorrow everyone forgot what money was, then money would no longer have any value. On the…