It’s hard to accurately measure how much anything is worth using a medium whose own price fluctuates highly all the time.

Published 2021-04-27 15:38:44

“Money is a matter of functions four: a medium, a measure, a standard, and a store.”

This chant cited by Alfred Milnes in 1919 book titled “The Economic Foundations Of Reconstruction” summarises the four basic properties of money.

It’s one of the basics you learn studying economics, which is going to help us understand why decentralised digital currencies are unlikely to perform the same functions.

For currency to serve its purpose, it has to be a:1. Medium of exchange2. Measure of value3. Standard of (deferred) payment4. Store of value

In other words, it has to be commonly accepted for transactional purposes so you don’t have to pay for a good with another good or service; it has to accurately reflect the value of products and services; it allows for settling payments at deferred dates (i.e. debt); and it can also be used to store value from whatever you sell (i.e. saved).


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