Posted on 07/01/2019 9:28:19 AM PDT by SeekAndFind
Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context.[1][2][3] The main functions of money are distinguished as: a medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment.[4][5] Any item or verifiable record that fulfils these functions can be considered as money.
The medium of exchange aspect of bitcoin is being developed now, with the so-called Lighting Network, a second layer built on top of the base layer of the bitcoin protocol, which, when complete, is anticipated to be able to transact many 10s of thousands or hundreds of thousands transactions per second, exceeding that of the credit card networks. This second layer is now live on the main net and is usable, with transaction fees on the order of fractions of a penny.
If a store or website doesn’t accept bitcoin, there are many bitcoin debit cards out there that they will accept. However, since I believe that bitcoin is still developing its store-of-value property, it is somewhat foolish to buy coffee or groceries with it. You would be like that guy who bought 2 pizzas for 10,000 bitcoins (years ago).
The days of the US dollar being the worlds reserve currency or petrodollar...... are numbered.
A decentralized, borderless, secure store of value and transferrable over the internet, world wide, and no government can stop it.
That sounds like a free market to me.
Five years from now may be very different...
I don’t see how bitcoin could ever be a store of value. It’s clear its value can evaporate overnight.
I agree it is a collectible item and medium of exchange.
I’m not quite sure what is meant by “unit of account.”
I have 10 bitcoins in my account? OK, it’s a unit of account.
“Value” is subjective, based on human wants/needs. As such, the value of anything could evaporate overnight (think Weimar Germany Marks, Zimbabwe dollars, Venezuelan Bolivars, US Greenbacks, Confederate Dollars, etc. Silver, as a monetary metal, is being demonitized as we speak ( look at the ever-increasing gold/silver ratio. The value of silver is being reduced to its value as an industrial metal.
That bitcoin has “value” is purely a market phenomenon-no one is forcing anyone to exchange fiat currency for it. It is a voluntary opt-in. People see value in its deflationary character, its censorship resistance, its unconfiscatability, and its network effects.
Unit of Account means that everyday items are priced in that particular money or currency. For bitcoin, that would be the “Satoshi”, the fundamental unit of bitcoin, which is 1 one-hundred millionth of a bitcoin. If bitcoin achieves large-scale adoption, then a gallon of milk would be priced in Satoshis.
“If Bitcoin is “money,” why is it valued in U. S. Dollars?”
Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context.[1][2][3] The main functions of money are distinguished as: a medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment.[4][5] Any item or verifiable record that fulfils these functions can be considered as money.
Not exactly a ringing endorsement if you apply those standards to the ol’ dollar.
Well, I wouldn’t give a ringing endorsement of any fiat currency really, but the dollar is probably the least worst of them.
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