Currency Anchoring and the "Computing Power Standard"

What is money? A definition of a circular argument is that money is whatever everyone believes is money.

That is, what people choose to become money is essentially believing in the power of belief.

Of course, rigorous research involves more factors as well. For example, the monetary system itself is an accounting system. In the process of exchanging resources, because the resources of the supply and demand sides are hard to “perfectly” match in quantities, time, and other elements, it often happens that I exchange things away today, and then exchange back what I need after some time. Therefore, it needs an intermediary to transition—first you record the transaction—this is money’s original source.

The emergence of money monetizes various resources into a unified unit of currency, thereby making it convenient for the two sides’ supply and demand to match across time and space. You can treat the part of a person beyond themselves in general as “society.” They sell things to society in exchange for money, and then use money to buy back what they need from society next time.

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