Bitcoin - Is this a coin?

Before we start this debate on bitcoin, we have to understand the purpose of money and the reason for the existence of dollars and coins. The purpose of money is as follows:

• Medium of exchange - you can exchange money for goods & services and vice versa.
• Unit of accounts - $1000 is more than $500, and so on.
• Store of value - you can save money so that you can use it in the future

Dollars and coins are a form of money. Gold and Silver are another form of money. As for bitcoin, it has been accepted as a medium of exchange in some countries. It can be saved for future use. So, if bitcoin fulfills the various functions of money, it has to be a form of money. We can henceforth conclude that bitcoin is a coin. 

But, wait a minute. Is this really right?

Before we can consider anything as money, we must have the faith and confidence that this money will be recognized and accepted by the rest of the people in the world. You cannot simply declare your old stinky rag as a form of money, and you expect some idiots in the supermarket to accept this as payment for your groceries. It will not work. US dollar has the full backing of the Government of United States and so it is recognized as the de facto currency of the world. Singapore dollar is fully backed by Government of Singapore, and so Singapore dollars and coins can be used to pay for goods and services in Singapore. If anything happens to your Singapore dollars, you can demand for a full refund from the government. They have the full obligation to pay you back every single dollar and cent. This is what I mean by 'full backing'. There is trust and confidence that your dollars and coins will be recognized no matter what happens. So, who is backing bitcoin? 

Bitcoins are digital coins created by some complex computer algorithm. It is neither controlled nor backed by anybody. If you like, you can always 'mine' your own bitcoins. If anything happens to bitcoins, nobody has the slightest idea of who will be responsible for that. Personally, it is no different from the shopping vouchers that you can redeem when you do your shopping in the department stores. It is something that you will not keep for long because you never know whether the department stores will still be around in a few years' time.

I know. I know. Next question in your mind right now is 'What about gold?' Gold is not backed by anybody but it is widely recognized as a form of money. Shouldn't bitcoin be given the same recognition? The use of gold as money has been around for thousands of years. You can always exchange gold for money and vice versa in any part of the world. In short, I would only consider bitcoin as a medium of exchange but not a form of money. 

Macau Lunar Coin - Rooster

There is sufficiency in the world for man's need but not for man's greed. This is a famous quote from Mahatma Gandhi. It is exactly what has happened to Macau Lunar coin. The price of the Macau Rooster Lunar 100 patacas coin has gone up to a staggering S$1030 in the most recent release. If you consider the fact that the snake coin was priced at S$780 in 2013, the price of this lunar series has gone up by 32% in 3 years. Does this make sense? At the same time, the mintage has gone up to 2000 pieces from 500 pieces. The increase in mintage and price is double whammy.

This coin has always been a balloted item because demand always exceeds supply. It would be sold out before the lunar new year. The situation has changed completely this year. When I visit the Singapore Mint website today, this coin is still available for sale. It is not difficult to understand the reasons for this. When there are more coins and each coin is priced at exorbitant level, demand will fall. This is a common sense. So, why is the issuer doing this? I guess it could be due to greed and greed has led to a trouble mistake.