Money then being established as the necessary medium of exchange
, another species of money-getting spon took place, namely, by buying and selling, at probably first in a simple manner, afterwards with more skill and experience, where and how the greatest profits might be made.
One can doubtless hit upon some medium of exchange
that seems to do well enough, but it's no more like the real thing than money is like food.
Heads are a medium of exchange
, and white heads are extremely valuable.
I also have argued that money has a significant cost advantage relative to simple barter and credit and this advantage helps explain why the same good has served most often as both the medium of exchange
and the unit of account, and why the development and widespread use of money tends to make simple barter scarce.
These episodes also offer a unique opportunity to study what is important about money in its use as a medium of exchange
. Specifically, they allow us to focus on 1) the qualities of a commodity that enable it to become a dominant currency, 2) the route by which a nationally mandated paper currency becomes acceptable as a medium of exchange
, and 3) the way in which competition between currencies sustains the exchange value of a fiat currency by restricting the actions available to the monetary authority.
currency as both a store of value and a medium of exchange
in nations whose economic or political situations make their own currencies less attractive for those purposes.
It was argued earlier [Miller, 1985] that the theory which became the monetary part of American Keynesianism is not Keynes' theory but one that arose from the error of translating Keynes' "money" not as bank deposits (the American phrase for his concept) but as medium of exchange
money or currency plus checking deposits.
The fundamental problem is whether one views a cryptocurrency as a medium of exchange
or as a store of value--an investment.
The draft of the bill proposes that a large platform utility may not establish, maintain or operate a digital asset that is intended to be widely used as a medium of exchange
, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System.
The similarity is in the fact that crypto currencies can be used as a medium of exchange
, a unit of account and a store of value.Using a crypto currency such as bitcoin, one can buy goods (medium of exchange
), at a given price (unit of account), using funds from their crypto wallets (store of value).
It serves as a medium of exchange
, as a store of value and as a unit of account.
a) Virtual Currency refers to any type of digital unit that is used as a medium of exchange
or a form of digitally stored value created by agreement within the community of VC users.