Den Yellek's avatar
Den Yellek 1 year ago
There is one part missing from this. It is not just store of value and medium of exchange. There is also the third function of money - a "unit of account". ChapterIt is not likely that bitcoin is widely used as a unit of account for some time I til massive adoption is reach and price stabilise. Chapter 9 of The Bitcoin Standard highlight this challenge. "On the one hand, Bitcoin's strict scarcity makes it a very attractive choice for a store of value, and an ever‐growing number of holders could tolerate the volatility for long periods of time if it is heavily skewed to the upside, as has been the case so far. On the other hand, the persistence of volatility in bitcoin's value will prevent it from playing the role of a unit of account, at least until it has grown to many multiples of its current value and in the percentage of people worldwide who hold and accept it."

Replies (1)

JoeBloggs's avatar
JoeBloggs 1 year ago
The Reality. Before Money, Barter was the exchange of things but was rated in Human Empathy. Money removed that Human Empathy part of the exchange, because it was not perfect Information that recorded exactly the Human Empathy part of exchange. That was Commodity Money. Since the 1970's Fiat Currency money became globally used, that further removed that Human Empathy exchange. People game system's, so that opened Pandora's Box, you can have everything at no cost. If you can game the system with no cost, you have the perfect environment for fast breeding Psychopaths to win. Empathy holds others back. Politicians from Vanity to Psychopaths can promise everything and deliver nothing. Psychopathic lawyers become heads of Government's, Councils, Mayor's and big Institutions and Non-Government Organisations etc et cetera. The nett result of the loss of exchanging Pure Human Empathy is living life backward to those who cherish the exchange of Human Empathy. As such, Gender Attacked, Family Attacked, Childhood Attacked, Religion Attacked, Property Attacked, Opinion Attacked, Home Attacked, Privacy Attacked, Health Attacked, Nature Attacked, Survival Attacked, Climate Attacked etc et cetera. Bitcoin goes right back to what I said at the start and further, it's the exchange of Pure Human Empathy before people even thought to write about how a God could do this better. If you don't think that chasing Fiat Currency is the Religion of living backwards, then my friends, your minds have gone.