Cryptocurrency as Money — Store of Value or Medium of Exchange?
**The following article was written by Kristoffer Mousten Hansen and Karras Lambert and published on September 28, 2022. Cryptocurrency as Money — Store of Value or Medium of Exchange? was originally published on mises.org. The opinions expressed in this article are the authors’ own. Bitcoin.com is not responsible for or liable for any opinions, content, accuracy or quality within the op-ed.** Cryptocurrency enthusiasts generally have a great appreciation for the Austrian school of economics. This is understandable since Austrian economists have always....
Related News
Most people don't even realize that money and currency are not the same thing. Although, people tend to see the similarities between each other, most of the times, they completely forget its differences. Currency was invented to replace Gold as an independent, natural medium of exchange and it has been maintained by governments. Currency has no limited supply and governments have been using this key feature to take value out from thin air. On the other hand, money came before currency. By definition, currency is inflationary and tends to lose value. The difference between currency and....
Many in the Bitcoin community have expressed that the most compelling function they want the Bitcoin Foundation to focus its advocacy programs on in the next 12 months is; serving as a medium of exchange. According to the outcomes of a community survey released by the Foundation, 37% of the respondents choose to focus on Bitcoin as a medium of exchange - i.e. used to actually buy things - over its use as a store of value (18%), 10% who do not know and 36% that opted for other uses. Commenting on the survey, the Executive Director of The Bitcoin Foundation, Llew Claasen, told Cointelegraph:....
The Bank of England (BoE) has published an article on the role of money in the modern economy and one topic was the future of digital currencies and payment technologies. The currency v commodity debate has been going on for a while and the Bank of England is clearly on the commodity side of the argument. "Digital currencies are not at present widely used as a medium of exchange. Instead, their popularity largely derives from their ability to serve as an asset class. As such they may have more conceptual similarities to commodities, such as gold, than money," the bank concluded. Not a....
Now, When I start to discuss money, what I refer to like most people, is fiat money. The first question to ask should really be: What is money, and more to the point, what isn't money? There are several accepted definitions of what constitutes money. I'm going for a simple one: "Money is any object or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or in a particular socio-economic context." So, Money is a good that acts as a medium of exchange in transactions, it is simply a facilitator of trade. Money, at its....
A court in Overijssel, Netherland has said that bitcoin is not money, but rather a medium of exchange, according to a report from Tweakers. The conclusion comes from a case against a person who promised to pay a fee for the delivery of bitcoins, but says that only part of the bitcoins were actually supplied. According to a rough translation, the complainant paid 22,000 euros for 2750 bitcoin, but says he only received 990. Thereafter, the lawsuit was starts, and as such the definition of what money is came into question. (Given the amount that was to be paid in exchange for the amount of....