jasontheoriginal on Nostr: Bitcoin is the perfect money. People need money to function as a society. The better ...
Bitcoin is the perfect money. People need money to function as a society. The better the money the better the society.
The characteristics of money are essential properties that make it an effective medium of exchange, store of value, and unit of account. Bitcoin is the best money in all but acceptability. Because of it dominance in all other characteristics and people's tendency to want the best money it will be horded and it's acceptability will be hindered until Gresham's & Thiers' Laws play out.
Durability: Money must withstand physical wear and tear so it can be used repeatedly. This is why materials like metal coins and paper are often used.
Portability: Money must be easily carried and transferred from one person to another. This means it needs to be lightweight and convenient to transport.
Divisibility: Money should be easily divisible into smaller units, allowing people to conduct transactions of varying sizes. For example, a dollar can be divided into cents.
Uniformity: Units of money must be uniform or identical in terms of value. This ensures that each unit is the same as the next, which is crucial for standardizing transactions.
Acceptability: Money must be widely accepted by people for transactions. Its value must be recognized and trusted by the public for it to function as money.
Supply: Money must be in limited supply to maintain its value. If money were too abundant, it would lose its value due to inflation.
Fungibility: Each unit of money should be interchangeable with another of the same value. This means that one dollar bill is the same as any other dollar bill in terms of value. These characteristics together ensure that money functions effectively in an economy as a reliable and efficient medium of exchange.
The characteristics of money are essential properties that make it an effective medium of exchange, store of value, and unit of account. Bitcoin is the best money in all but acceptability. Because of it dominance in all other characteristics and people's tendency to want the best money it will be horded and it's acceptability will be hindered until Gresham's & Thiers' Laws play out.
Durability: Money must withstand physical wear and tear so it can be used repeatedly. This is why materials like metal coins and paper are often used.
Portability: Money must be easily carried and transferred from one person to another. This means it needs to be lightweight and convenient to transport.
Divisibility: Money should be easily divisible into smaller units, allowing people to conduct transactions of varying sizes. For example, a dollar can be divided into cents.
Uniformity: Units of money must be uniform or identical in terms of value. This ensures that each unit is the same as the next, which is crucial for standardizing transactions.
Acceptability: Money must be widely accepted by people for transactions. Its value must be recognized and trusted by the public for it to function as money.
Supply: Money must be in limited supply to maintain its value. If money were too abundant, it would lose its value due to inflation.
Fungibility: Each unit of money should be interchangeable with another of the same value. This means that one dollar bill is the same as any other dollar bill in terms of value. These characteristics together ensure that money functions effectively in an economy as a reliable and efficient medium of exchange.