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From my economics training, Money needs to have all 3 of the following characteristics. 1. A medium of transfer 2. A unit of account 3. A store of value Crypto
by bitxbitxbitcoin 5y ago
From my economics training, Money needs to have all 3 of the following characteristics.
1. A medium of transfer
2. A unit of account
3. A store of value
Cryptocurrency generally does well on the first and not at the others.
- pclmulqdq 5y agoModern monetary theory disagrees with the third one, and so do I. I don't think a currency needs to be a store of value, just a medium of exchange. In practice, we store value in a lot of things that are not money (stocks, bonds, commodities, real estate, etc). For example, if you had a system of money with guaranteed inflation at a certain level, you could produce a synthetic store of value that is not the money.