Bitcoin 101 with Linda Hill (WiM114)
The "What is Money?" Show
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Is Bit Coin Accepted as a Medium of Exchange?
Bitcoin is predominantly being used as a store of value to day, although it is also used as a medium of exchange. The theory is at least one day, when bitcoin becomes fully monitized, that will actually denominate prices in bitcoin. So my incentive as an economic actor dealing with bit coin is to save ind bit coin. I want to spend and borrow dollars, and i want to save bit coin. That's the rational action. Because dollars go down in value as they produce more and more and more. And bit coin, in theory at least, as we produce less and less and less, will go up in value in terms of dollars.
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