1min snip

"Upstream" with Erik Torenberg cover image

E54: Naval Ravikant and Balaji Srinivasan on Why History Points to Crypto

"Upstream" with Erik Torenberg

NOTE

Different Functions of Money

Money serves as a store of value, a medium of exchange, and a unit of account. The store of value function is essential to prevent the devaluation of wealth due to inflation. Various assets like gold, Bitcoin, real estate, oil, and US dollars are used as stores of value. The medium of exchange function has a strong network effect, determining which currencies are widely accepted for transactions. The unit of account function establishes a common monetary standard for pricing goods and services. The adoption of different properties of money, such as store of value, medium of exchange, and unit of account, influences the network effect. Currently, the majority of the global population does not use cryptocurrency, making the future of money still uncertain.

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