Paint it Black, Friday
I wrote earlier about my impressionistic thoughts on bitcoin. I’m still learning as much as I can about bitcoin, currency systems, protocols and platforms. My brain hurts. I feel like Billy Ray Valentine.
In order to be a currency (i.e., money), bitcoin needs to serve three functions: store of value, medium of exchange, unit of account. (I’ve written before about why “bitcoin as a currency” may be a local maximum - a powerful application but only scratching the surface of its potential.) But if you look at this classic “money test”, bitcoin currently succeeds as a store of value but is less successful as a medium of exchange and even less so as a unit of account.
A “store of value” is something that has value, as Randolph Duke might explain to Billy Ray Valentine (go to 0:51 of video above). The classic examples are houses, stock or art. These things have inherent value but may not...
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