4 ms·
> ... speculative instruments like baseball or pokemon cards. Or paintings, or pretty baubles. People like what they like. If the number of people liking somet
by mdpopescu 6y ago
> ... speculative instruments like baseball or pokemon cards.
Or paintings, or pretty baubles. People like what they like. If the number of people liking something grows large enough, the "something" can apparently become an exchange medium.
- jljljl 6y agoMedium of exchange is a bit different. Successful currencies generally need some price stability, otherwise they are avoided or hoarded, and their use as a medium of exchange vanishes. Historically this would happen with coins minted from precious metals like gold: when the price of gold rose above the face value of the coins, the coins disappeared from circulation.