Wasssaaaa on Nostr: More like.. money is a good that becomes monetized over time. Becomes valuable as a ...
More like.. money is a good that becomes monetized over time. Becomes valuable as a money. Store of value. As it becomes a store of value people will exchange it for other valuable things.
Cigarettes were used as a money in prisons. People accepted it as a medium of exchange because it held it was valuable and held its value over time.
Toilet paper is also in prisons. Great medium of exchange. Easy to transfer to people. But no one wants it as its properties make in a bad store of value. (Plentiful, constant dilution)
So while it’s a good medium of exchange meaning easily transferable, it’s not a good medium of exchange in the sense that no one will exchange something of value for it.
Fiat came to be from being backed by gold. It was first a store of value, then a medium of exchange built on top cause gold is heavy to move efficiently. Then they unbacked the gold and now people think fiat has value.
The people who come to bitcoin realize what happened and want to instead go back to a harder money.
Cigarettes were used as a money in prisons. People accepted it as a medium of exchange because it held it was valuable and held its value over time.
Toilet paper is also in prisons. Great medium of exchange. Easy to transfer to people. But no one wants it as its properties make in a bad store of value. (Plentiful, constant dilution)
So while it’s a good medium of exchange meaning easily transferable, it’s not a good medium of exchange in the sense that no one will exchange something of value for it.
Fiat came to be from being backed by gold. It was first a store of value, then a medium of exchange built on top cause gold is heavy to move efficiently. Then they unbacked the gold and now people think fiat has value.
The people who come to bitcoin realize what happened and want to instead go back to a harder money.