stacksatsio on Nostr: Yeah he’s got it backwards. Nick Szabo is the one to read on this but the Austrians ...

Yeah he’s got it backwards. Nick Szabo is the one to read on this but the Austrians he mentioned all agree it’s SoV first followed by MoE.

The idea is basically something of value would be stored in surplus and traded for other things of value someone had stored in surplus - the best of these stores gravitated towards money in different areas and contexts.

Seashells which is his first mention weren’t collected to simply become a Medium of Exchange - they were first a collectable and because they were durable and portable, later became proto-money.

It doesn’t make any sense for a MoE of exchange to emerge unless people value it enough that they’re willing to hold it for a period because they believe it will hold its value sufficiently to be traded over time.