Global Feed Post Login
Replying to Avatar Dr. Bitcoin, MD

Hundreds of years ago, the best technology for money was gold and the limited technology of the time forced 3 functions in to money: medium of exchange, store of value, and unit of account.

And then some genius invented currency, severing the link between medium of exchange and store of value + unit of account.

Bitcoin does essentially the same thing, except that it severs store of value from unit of account. Sure, one can use bitcoin as a means of exchange (although liquid and lightning function far better in this regard) and one could use bitcoins as a unit of account (good luck paying back a bitcoin denominates loan!) but you don’t _have_ to.

So what is the future here? Perhaps you can have a government defined unit of account still dominate in the new bitcoin world order. Money and currency have coexisted in some form since the Medici family…

Avatar
Roark Janis 9mo ago

But why, if Bitcoin can do all three in one?

Reply to this note

Please Login to reply.

Discussion

Avatar
Dr. Bitcoin, MD 9mo ago

That would be awesome. But as of now it can’t. Not well at least. And we don’t have words for store of value like we do for means of payment (currency).

Thread collapsed