Guy on Nostr: We need to make gold, Bitcoin, and Monero money. People need to be free to choose. No ...
We need to make gold, Bitcoin, and Monero money. People need to be free to choose. No one should be prohibited from using any of these as media of exchange or money.
If any of them is best as a medium of exchange, that means it will be best as a store of value too. In order for the thing to be a medium of exchange, it must be valued at the time of the first exchange, and also be valued at the time of the later exchange, thus a "store of value." So to be a better medium of exchange necessarily means to be a better store of value or a better money.
Value isn't really stored anywhere, valuation takes place in the minds of the valuers, so it's kind of an idiom to talk about "store of value" in the first place. You have no guarantee that the thing you are keeping will be valuable in the future, even if it's money, because its future value depends upon the minds of the individuals later in time.
Is an appreciable asset a store of value that is not a medium of exchange? Sure. But if Bitcoin is not easily exchanged, it has lost its way and value should go to near zero. What other function does it have besides its ease of transfer? It might be kind of like "owning" the name of some distant star: just kind of a fun curiosity or game. But that's not money. That's not a medium of exchange.
The reason we talk about "store of value" is probably due to some flawed econ textbooks of the past saying that money needs this special attribute.
Let's make gold, Bitcoin, and Monero money. If it doesn't work as money, we have work to do.
If any of them is best as a medium of exchange, that means it will be best as a store of value too. In order for the thing to be a medium of exchange, it must be valued at the time of the first exchange, and also be valued at the time of the later exchange, thus a "store of value." So to be a better medium of exchange necessarily means to be a better store of value or a better money.
Value isn't really stored anywhere, valuation takes place in the minds of the valuers, so it's kind of an idiom to talk about "store of value" in the first place. You have no guarantee that the thing you are keeping will be valuable in the future, even if it's money, because its future value depends upon the minds of the individuals later in time.
Is an appreciable asset a store of value that is not a medium of exchange? Sure. But if Bitcoin is not easily exchanged, it has lost its way and value should go to near zero. What other function does it have besides its ease of transfer? It might be kind of like "owning" the name of some distant star: just kind of a fun curiosity or game. But that's not money. That's not a medium of exchange.
The reason we talk about "store of value" is probably due to some flawed econ textbooks of the past saying that money needs this special attribute.
Let's make gold, Bitcoin, and Monero money. If it doesn't work as money, we have work to do.