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by yoz-y 2565 days ago
> Except them being instantly verifiable, have a constrained supply, are easier to transfer, are divisible, are fungible & uniform... Just the properties that money actually needs and make for a good medium of exchange.

Money also needs to have stable value within some margin and small but steady inflation. If the value rises then it is a bad idea to spend it because it becomes an investment. If the value fluctuates nothing can have a nominal price. A MacBook costs $1400, but in a day it could be anything between 0.2 and 1 bitcoin. Like in the cafe story in one of the GP comments, this makes it impossible to use for any transaction.

1 comments

The only thing preventing me from using bitcoin regularly is the need to account for the capital gains (losses) on every individual transaction relative to USD. One year's worth of itemized accounting for trivial transactions was enough.

Barring that, I'd be actively using BTC (or other cryptocurrencies) in the same mode as many people use Venmo.

Would it not bother you that an object would cost twice as much on one day that on another?
What if it costs twice as less? Think of it as cashing in a small part of some stock/investment to use it to buy something. If you're really that concerned about crypto price changing, you can just top it back up that evening.
That is a good analogy. One would not cash in a part of investment for a banal purchase but might do so when buying a house. In that case I would definitely wait for a right moment to sell.