It’s time to don the professorial robe for another lesson in econ 101. Today we deal with something we all know and love – money.
In both a literal and figurative sense here’s the CliffsNotes version of the three basic functions of money:
See a problem? For a currency to serve as money it must be a store of value. What is the value of Bitcoin? Good (insert favorite expletive) luck figuring that out.
With the rapidly fluctuating and seemingly arbitrary price of Bitcoin there is no way it can meet the store of value test. As such Bitcoin is not money.
This will show up on Friday’s quiz!