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Cryptocurrency as Money—Store of Value or Medium of Exchange?mises.org/wire/cryptocurrency-money-store-value-or-medium-exchange
11 sats \ 4 comments \ @pi 16 Oct 2022 bitcoin
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5 sats \ 2 replies \ @pi OP 16 Oct 2022
Bitcoin enthusiasts who align with the Austrian school of Menger, Mises, and Rothbard err when they ascribe fundamental importance to the “store of value” function of money at the expense of the “medium of exchange” function, the latter of which is the only essential aspect of money. Likewise, downplaying the importance of active usage of cryptocurrency, which also entails increased business demand, in favor of a “HODL forever” mentality, goes against Mises’s recognition that “business usage alone can transform a commodity into a common medium of exchange.”
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0 sats \ 0 replies \ @notgeld 16 Oct 2022
We have "hodl forever" people just because only with Bitcoin it became possible at all.
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0 sats \ 0 replies \ @l0k1 16 Oct 2022
I don't think that anyone who has actually READ the austrians thinks they value one over the other.
They just say that if you don't have SoV then you get booms and busts.
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10 sats \ 0 replies \ @Brunswick 16 Oct 2022
An Austrian medium of exchange presumes the medium has value.
When they say medium, they mean something that has good qualities of money such as fungiblity, durability, divisibility, etc. They acknowledge the medium will tend to increase in value when its accepted as a medium of exchange because of its additional use as a medium of exchange.
Whether a medium of exchange is a store of value is or not is implied by its property of being a medium that is valued and non-triviality to acquire. Most Austrians of the past assume that a medium has its value based on uses other than its usefulness as money. This is only because nothing like bitcoin has existed before.
Bitcoin is intrinsically a medium, this is self evident. Whether it's a medium of exchange is also unquestionable since it has all the necessary properties of a good money, and that its presently used as a medium of exchange. Its ability to serve as a store of value derives from its limited quantity and divisibility and wide acceptance of its value.
Whomever wrote this article (Hansen) is still in the blocksize/shitcoin honeypot and not aware of how lightning changes this paradigm. Bitcoin is for HODLing AND using as a medium of exchange; they go hand in hand.
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