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I'm not sure this entirely follows...? My (admittedly, limited) understanding is that standard fiat currencies are stores of value, media of exchange, and unit
by danaris 4y ago
I'm not sure this entirely follows...?
My (admittedly, limited) understanding is that standard fiat currencies are stores of value, media of exchange, and units of account. Being a store of value doesn't mean it needs to appreciate in value, just that it doesn't depreciate to nothing over reasonable timescales.
From what I've seen, the main problem with Bitcoin specifically as a currency is that it makes a terrible unit of account: its volatility compared to regular currencies means that no one's going to denominate any prices in BTC.
- lottin 4y agoThat's right, a volatile currency is bad for businesses, because the revenue from sales will likely exceed by a lot or fall well below the cost of sales, increasing the likelihood of bankruptcy.