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Originally Posted by tw
Using that definition, then how is money related to liquidity?
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If one has a good amount of money (gold, silver, house) but still cannot transact I would call that cash poor. You're worth a million dollars but still can't pay the electric bill.
That's a good question though. Having money isn't always the best situation. Currency is good to transact but varies in value. Slightly in the case of the USD.
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Originally Posted by tw
Is a debit card in the category called currency?
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I would say yes. Times 2. Your digits in the bank fund the electronic transfer currency, the card.
The debit card is unique in my opinion because it doesn't incur debt. There's no interest. It finalizes a purchase. It's paid. No further payments are required.
The problem with that debit card is that it's tied to the bank. That's it's upside and downside at the same time.
My bank has put a fraud suspicion block on my card 1 or 2 times a year for the last 10 years. It's a stable system but I don't count on it. Regardless of what the balance is, it still might not work when I need it.
On the upside though, I do like it. Dragging large amounts of cash around is often dangerous. Either by theft by steet criminals, or by theft of law enforcement.
Quote:
Originally Posted by tw
Is a credit card classified as both credit and currency - since it does both functions?
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Yes on both. But with the downside ( to me anyway ) of having to pay interest.
But there is also the benefit of challenging suspicious or fraudulent charges. This is a big benefit. It instills it's own form of confidence.
Once you transact in crypto or bullion, it's done. Most of the time that's the point of using these. No further payment required. It's paid for.