I'm neither a crypto defender or an economist, but I don't agree with either of these statements. I'd say money is supposed to be a store of wealth, and the hottest investment is a store of wealth. clutches pearls The only issue I might have with crypto is if they socialize their costs. Electric infrastructure is expensive and costs socialized. The risk of lost investment is usually mitigated by the other costs (whether homes or large businesses) the new electrical demand is investing in. It's a trust that they'll stick around to help pay for the electric infrastructure cost. The bill an end user sees doesn't tell the whole story; actual costs aren't so easily divided.Money is supposed to be a means of buying things. Now, the nation’s hottest investment is buying money.
"Money" or "currency" is, as I see it/feel it (it is 2 am and I have had some alcohol) is an esoteric system which society has created and bought into essentially so we may assign specific and mutually understood values to, essentially, everything. I wouldn't say money is supposed to be a store of wealth; "store" implies a certain inherent static intent and purpose engineered into currency at creation. I don't believe anyone came up with the concept of a currency with the sole or even primary intention of then hoarding it; money is created so that people may trade and barter. Money is a quantifier. Money can be a measure of wealth; but in and of itself I'd argue it was never supposed to be a store of it. In a one-man society money doesn't exist, but a one-man society can store and stockpile all sorts of goods and valuable items. Money is a form of communication almost. It only exists when two people or more want to exchange things (different things).
I think I mostly agree with you. Me saying it's a store of wealth is much too basic of a statement in the same way the statement that it's a means of buying things is too basic. You're right; money is a way of converting something into a widely accepted commodity that can then be converted back into something else. My job doesn't want to pay me in cat food, granola bars, and sleeping bags. I do think there's an important storage or accumulation aspect, though. Money lets one take long duration effort and turn it into a very short term purchase (saving to buy a car, for example) or sell a single large item and use the proceeds over a long duration.
First hit for "three functions of money" was at cliffsnotes.com, why not? Store of value. money must hold its value over time ... Money may not even be the best store of value because it depreciates with inflation. However, money is more liquid than most other stores of value because as a medium of exchange, it is readily accepted everywhere. Furthermore, money is an easily transported store of value that is available in a number of convenient denominations. Unit of account. Knowing the value or price of a good, in terms of money, enables both the supplier and the purchaser of the good to make decisions about how much of the good to supply and how much of the good to purchase.Medium of exchange. Without money, all transactions would have to be conducted by barter ... in a barter system, exchange can take place only if there is a double coincidence of wants between two transacting parties.
The distinction often seems to rest on how much if it you have.I'm neither a crypto defender or an economist, but I don't agree with either of these statements. I'd say money is supposed to be a store of wealth, and the hottest investment is a store of wealth.