Is BitCoin the currency of the future?

[Micah71381]

@filc

@Micah71381

This post has some good points in it and I would like to go over them one at a time to decrease the chance we get derailed so I will start here. This statement indicates to me that there can be only one money at any given time. Your definition includes the word “most” which is a relative maximum term and indicates that there can not be two items that meet this requirement.

If someone wanted to hold the good that was most liquid with the intent to use it as a medium of exchange, why would they prefer a less liquid good over a more liquid good? Assuming both currency candidates are readily accessible to them? The only reason why a person would choose the less liquid good as a medium of exchange is if he mistakenly thought it was more liquid when in fact it wasn’t.

I am trying to understand the definition of money as you have worded it. Why people would choose to accept one over another does not matter for defining the term. In some places, both the USD and the EU are accepted as a medium of exchange as well as perhaps a local currency. Am I correct in understanding that only one of these can be considered money while the others cannot?

Assuming pure global anarchy in which nails and screws are both commonly used as a medium of exchange, would nails be considered money and screws not if nails were used in 51% of transactions and screws in 49%?

@filc

@Micah

I also assume that in a country with multiple currencies in very high usage only one can qualify for money and the others cannot?

Can you provide an example? A good example of multiple currencies is something like gold, silver, copper each working together with a very strict ratio between the two. Do you have another example to provide? Bitcoin is an example of a currency proxy, not a currency.

Any country in which two currencies are widely accepted. I will admit, I am not familiar enough with current world politics to know of many good examples but it is my understanding that Somalia widely accepts the USD as well as their own currency.