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RE: 📢 VOTU PODCAST 🔈🔈🔊 HOW TO GROW STEEM part 1 🍩
A term that I hear oftem about the distribution of currency is "money velocity". Money velocity is high in a healthy economy, is what I'm being told. though I've heard a difference between money and currency that I don't realy understand.
Currencies are a type of money, typically money that is the official medium of exchange for a state (i.e. it's the only money they'll accept for the payment of taxes). Money is basically any kind of token. And yes, "velocity of money" is important because it effectively increases the money supply and stimulates economic activity. For example, imagine you gave 1 dollar to another person, they use it to buy something from someone else, but that other person just holds the dollar and never spends it. Only one person bought something with that dollar. Now imagine that you gave 1 dollar to a different person, who bought something from another person, who bought something from another person, who bought something from another person, who bought something from another person. That dollar has now been used to buy 400% more goods and services! In other words, if you increase in the velocity of money by X%, you effectively increase the money supply by X% without increasing the number of tokens produced.
Thank you, I was clinging for the right language!