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Wary (OP)
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May 29, 2014, 10:11:50 PM |
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It's a standard phrasing: "Store of value and medium of exchange". But for me it sounds like "animals and dogs". Because for something to be a medium of exchange it have to be a store of value as well. Medium of exchange is just a short-term store of value.
Wouldn't it be more correct to say just "store of value" (short-and-long-term)?
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beatljuice
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May 30, 2014, 12:20:32 AM |
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You need both. A certificate of deposit (CD) is a sore of value buy a very poor medium of exchange. We just have to live with it, just like physicists have to use space-time. Maybe we could shorten it and say "store-exchange" or "ex-store-change"  |
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OROBTC
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May 30, 2014, 12:46:08 AM |
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...
BTC has one other very important use: it is very mobile, you can take a lot of value when you get on that flight to Europe...
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Ron~Popeil
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May 30, 2014, 01:36:15 AM |
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...
BTC has one other very important use: it is very mobile, you can take a lot of value when you get on that flight to Europe...
That and the ability to transmit money to the third world are two of the more apparent uses. Avoiding bullshit regulations about how you move YOUR money will be huge. |
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Trading
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May 30, 2014, 01:45:41 AM |
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The notion of mean of exchange implies certain characteristics that store of value doesn't require: divisibility, liquidity or transportability.
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Coinsera
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May 30, 2014, 02:06:03 AM |
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It's a standard phrasing: "Store of value and medium of exchange". But for me it sounds like "animals and dogs". Because for something to be a medium of exchange it have to be a store of value as well. Medium of exchange is just a short-term store of value.
Wouldn't it be more correct to say just "store of value" (short-and-long-term)?
When purpose of earning in cash or equivalent adjoined in a task, it is exchange, that's right but exchange is paid of services and exchange in cash or equivalent either way is investment and return, this is basically 'Store of value and medium of exchange. Thanks |
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Wary (OP)
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May 30, 2014, 02:40:13 AM |
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The notion of mean of exchange implies certain characteristics that store of value doesn't require: divisibility, liquidity or transportability.
So mean of exchange is some special type of store of value, just like dog is a special type of animal. Still, "animals and dogs" doesn't sound logical. "Animals, including dogs" would be more proper, although, more clumsy.  |
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twiifm
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May 30, 2014, 02:49:40 AM |
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There are some examples of money that werent good stores of value was rice or tobacco
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Trading
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May 30, 2014, 03:04:37 AM |
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In times of high inflation (like 20 or 30%), money will be a terrible store of value, but will keep its function as means of exchange.
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Wary (OP)
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May 30, 2014, 05:25:18 AM |
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In times of high inflation (like 20 or 30%), money will be a terrible store of value, but will keep its function as means of exchange.
Provided it stores it's value for the duration of the exchange. |
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Ron~Popeil
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May 30, 2014, 03:49:24 PM |
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In times of high inflation (like 20 or 30%), money will be a terrible store of value, but will keep its function as means of exchange.
The western world is closer to that type of inflation than most realize. I love the philosophy of bit coin and the exciting new technological world it will create, but I also collect it as a hedge against the coming inflation. |
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DeathAndTaxes
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Gerald Davis
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May 30, 2014, 03:54:49 PM |
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The notion of mean of exchange implies certain characteristics that store of value doesn't require: divisibility, liquidity or transportability.
This. A 40KG gold bullion bar is a store of value. It is not a very good medium of exchange. Gold in general has always remained a store of value however over time it became an inferior medium of exchange. |
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Trading
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May 31, 2014, 01:25:14 AM |
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In times of high inflation (like 20 or 30%), money will be a terrible store of value, but will keep its function as means of exchange.
Provided it stores it's value for the duration of the exchange. I can accept your perspective, but the notion of store of value seems to have, at least, a median term sense. Would you call a gift card with 24h of validity a mean of store of value? The notion seems to imply a lasting safe haven. |
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Wary (OP)
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May 31, 2014, 10:40:05 PM |
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In times of high inflation (like 20 or 30%), money will be a terrible store of value, but will keep its function as means of exchange.
Provided it stores it's value for the duration of the exchange. I can accept your perspective, but the notion of store of value seems to have, at least, a median term sense. Would you call a gift card with 24h of validity a mean of store of value? The notion seems to imply a lasting safe haven. Agree. While technically correct "store of value" here can be misleading, since the common usage implies "long-term". So we would have to say short-term and long-term store of value which won't be improvement over the current usage |
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zimmah
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June 01, 2014, 12:19:28 AM |
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gold is a great store of value but a pretty poor medium of exchange (try to buy a loaf of bread at the local supermarket with a gold coin)
so even though you could technically spend gold, it's not a really great medium of exchange in everyday life.
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AlexGR
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June 01, 2014, 12:31:07 AM |
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gold is a great store of value but a pretty poor medium of exchange (try to buy a loaf of bread at the local supermarket with a gold coin)
so even though you could technically spend gold, it's not a really great medium of exchange in everyday life.
It's not a poor medium of exchange. It's suitable for high worth transactions. Silver for low worth. In the same sense, fiat currency coins are for low worth, paper notes for high worth. Each one for a different task. |
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Trading
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June 01, 2014, 12:36:28 AM |
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A medium of exchange should also be a measure of value. The fact that goods are priced in the same currency helps a lot making purchase decisions. Having to do all the math to be able to decide and pay daily groceries or similar items in gold or silver wouldn't be helpful.
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DeathAndTaxes
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Gerald Davis
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June 01, 2014, 12:39:22 AM |
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It's not a poor medium of exchange. It's suitable for high worth transactions. Silver for low worth. Really? Your average cashier can identify fraudulent coins with 99%+ accuracy? Easy to weigh, validate purity, check dimensions? Effective for use in eCommerce, mail/phone order transactions, and in money/value transfers to a different location? Gold and silver and completely worthless as a medium of exchange. They retain a high price because they are still effective as a store of value (for now). |
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AlexGR
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June 01, 2014, 12:42:24 AM |
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It's not a poor medium of exchange. It's suitable for high worth transactions. Silver for low worth. Really? Your average cashier can identify fraudulent coins with 99%+ accuracy? There are machines or tools that are pretty easy to use for that. Gold and silver and completely worthless as a medium of exchange.
Eeehhh? The world has been working with gold and silver coins for millenia. |
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zimmah
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June 01, 2014, 01:08:16 AM |
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It's not a poor medium of exchange. It's suitable for high worth transactions. Silver for low worth. Really? Your average cashier can identify fraudulent coins with 99%+ accuracy? There are machines or tools that are pretty easy to use for that. Gold and silver and completely worthless as a medium of exchange.
Eeehhh? The world has been working with gold and silver coins for millenia. Those machines and tools are expensive Also, most cashiers would not even know the exchange rate of gold/silver to local currency. And how to handle change? Return fiat? |
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