Questions tagged [economic functions of money]

Lorenzo Fri Jul 12 2024 | 7 answers 1707

As a keen observer of the financial landscape, I must inquire: How well do cryptocurrencies actually fulfill the fundamental economic functions of money? Are they able to serve as a reliable store of value, maintaining their purchasing power over time? Do they function efficiently as a medium of exchange, facilitating transactions between parties in a swift and cost-effective manner? Moreover, can they fulfill the role of a unit of account, providing a common measure for pricing goods and services? Given the volatility and novelty of this digital asset class, there is much debate surrounding the extent to which cryptocurrencies truly measure up to the traditional monetary paradigm.