Bitcoin
Bitcoin 101A digital money with a hard cap of 21 million coins, run by a network that no single company or government controls.
Follow the moneySatoshiHalvingLedgerSelf-custody2008: the white paperReserve Watch
The Money with Mara dictionary
Money words, in plain English
if a word confused you in a lesson, it lives here.
20 words, A to Z. New words added with every lesson.
Bretton Woods
Evolution of MoneyThe 1944 deal that tied world currencies to the dollar, and the dollar to gold at $35 an ounce. It ended in 1971.
Follow the moneyGold standardFiat money1944: Bretton Woods1971: the gold window closes
Collateral
Money FoundationsSomething you pledge to a lender, which they can take if you don't repay.
Follow the moneyDebt (national)Interest
CPI
InflationThe Consumer Price Index: the government's measure of how prices for a basket of everyday goods change over time.
Follow the moneyInflationPurchasing powerCompare: CPI vs. inflationThen vs. now: one Big Mac
Debt (national)
$40 TrillionEverything the government owes: past deficits added up, plus what it owes its own trust funds.
Follow the moneyDeficitInterestCollateralCompare: Deficit vs. debtThe $40 Trillion QuestionLive debt clock
Deficit
$40 TrillionWhat the government spends beyond what it collects in a single year.
Follow the moneyDebt (national)InterestCompare: Deficit vs. debtThe $40 Trillion Question
Deflation
InflationA general fall in prices. Each dollar buys a little more than before.
Follow the moneyInflationDisinflationPurchasing power
Disinflation
InflationA slowdown in inflation. Prices are still rising, just more slowly than before.
Follow the moneyInflationDeflationCPICompare: Inflation vs. disinflation
Fiat money
Evolution of MoneyMoney that's valuable because a government declares it legal tender, not because you can swap it for gold.
Follow the moneyGold standardBretton WoodsM2 money supplyInflationCompare: Fiat money vs. gold standard1971: the gold window closes
Gold standard
Evolution of MoneyA system where a currency can be exchanged for a fixed amount of gold. The dollar's last link to gold ended in 1971.
Follow the moneyFiat moneyBretton WoodsCompare: Fiat money vs. gold standard1933: turn in your gold1971: the gold window closes
Halving
Bitcoin 101The scheduled cut in Bitcoin's new-coin reward, every 210,000 blocks (about every four years).
Inflation
InflationA general rise in prices. Each dollar buys a little less than it did before.
Follow the moneyCPIPurchasing powerM2 money supplyFiat moneyDisinflationCompare: Inflation vs. disinflationCompare: CPI vs. inflationThen vs. now: one Big Mac
Interest
$40 TrillionThe price of borrowing money, paid on top of what you borrowed.
Follow the moneyDebt (national)CollateralDeficit1913: the Fed is created
Ledger
Evolution of MoneyA record of who owns what and who paid whom.
Follow the moneyBitcoinSatoshi2009: Bitcoin's first blockThe People's Ledger
M2 money supply
Evolution of MoneyA count of the dollars people can reach easily: cash, checking, savings and similar accounts.
Follow the moneyInflationFiat moneyPurchasing powerSee the numbers: M2 charts
Purchasing power
InflationHow much a unit of money can actually buy. When prices rise, it falls.
Follow the moneyInflationCPIM2 money supplyThen vs. now: one Big Mac
Recession
Behind the HeadlineA broad, lasting decline in economic activity: jobs, income, spending and production.
Follow the moneyInflationDebt (national)Interest
Satoshi
Bitcoin 101The smallest unit of bitcoin: one hundred-millionth of a coin. Named after Bitcoin's creator, Satoshi Nakamoto.
Follow the moneyBitcoinHalving2010: two pizzas
Seed phrase
Bitcoin 101The list of words that can restore a Bitcoin wallet. Whoever has it has the coins. Never share it.
Follow the moneySelf-custodyBitcoin
Self-custody
Bitcoin 101Holding your own Bitcoin keys instead of letting a company hold them for you.
Follow the moneySeed phraseBitcoin
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Compare these terms
Easy to mix up
two words, one difference, one example.
Deficit vs. debt
Deficit
What the government spends beyond what it collects in a single year.
Debt (national)
Everything the government owes: past deficits added up, plus what it owes its own trust funds.
The difference: The deficit is one year's shortfall. The debt is every shortfall added up.
Example: Spend $110 and collect $100: a $10 deficit. Do that five years in a row and the debt is $50.
Inflation vs. disinflation
Inflation
A general rise in prices. Each dollar buys a little less than it did before.
Disinflation
A slowdown in inflation. Prices are still rising, just more slowly than before.
The difference: Inflation means prices are rising. Disinflation means they're rising more slowly. Prices haven't fallen.
Example: Inflation goes from 6% to 3%. Prices still rose 3% this year. Only falling prices would be deflation.
Fiat money vs. gold standard
Fiat money
Money that's valuable because a government declares it legal tender, not because you can swap it for gold.
Gold standard
A system where a currency can be exchanged for a fixed amount of gold. The dollar's last link to gold ended in 1971.
The difference: Under a gold standard, a dollar is a claim on gold. Under fiat, it's backed by the government's say-so.
Example: Under Bretton Woods, foreign governments could trade $35 for an ounce of gold. Since 1971, a dollar trades for another dollar.
CPI vs. inflation
CPI
The Consumer Price Index: the government's measure of how prices for a basket of everyday goods change over time.
Inflation
A general rise in prices. Each dollar buys a little less than it did before.
The difference: Inflation is the thing happening. CPI is one way the government measures it.
Example: Your rent, eggs and gas go up: that's inflation. The CPI tracks a set basket of goods to put a number on it.