On Bitcoin – The Aleph Blog

— Medium of exchange Means of final settlement — Store of value — Unit of account •In value-weighted terms, exchange of cash money is almost never the dominant form of exchange •We issue claims on money and use those claims as our medium of exchange — If that sounds abstract, consider what happens after you pull out your credit card • Medium of exchange Means of final settlement • Store of value • Unit of account Economists have no real definition of money. In programming language lingo, money is “duck typed”. Whatever quacks like a duck, whatever serves all these roles, counts as money. The unit of account role is essential, but very tricky. It’s common, but misleading and dangerous, to argue that money can ... Bitcoin doesn’t have much privacy, since every transaction is logged forever in a publicly accesible block chain. Of course the log doesn’t have the IP address, but since the bitcoin address is recorded forever, it might be possible, at a later date, for an interested party to map all the bitcoin transactions to individuals who conducted them. Bitcoin; Markets; Equities; Further reading. Elsewhere on Tuesday, - “Internal devaluation” via falling wages is incredibly costly — but Greece has been paying incredible costs. - In Greece ... Also, since Bitcoin will never achieve its dream of becoming an all-purpose medium of exchange that people are willing to hold and save, and not just used for spot exchanges on an as-needed basis, there will remain transaction costs at both ends of Bitcoin transactions as its users convert out of and then back into the conventional currencies that they really want to hold. Finally, the lack of ...

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