thejohnnycrypto on Nostr: Store of value and medium of exchange aren’t competing use cases. They reinforce ...

Store of value and medium of exchange aren’t competing use cases. They reinforce each other.

You can separate them conceptually to test the thesis:

Can something function as a store of value even if people aren’t regularly spending it?

Sure.

Can something function as a medium of exchange without people believing it will retain value long enough to accept it?

Much harder.

But that separation is a thought experiment. Reality doesn’t happen in a vacuum.

The stronger something becomes as a store of value, the more economic reason there is to hold it, accept it, borrow against it, price things in it, and eventually transact with it.

And the more useful it becomes for exchange, the stronger the network and demand supporting its value.

So if the store-of-value thesis can survive even when you artificially remove medium-of-exchange utility from the equation, that doesn’t weaken the argument.

It strengthens it.
Because in the real world, you eventually get both.

#asknostr #Mediumofexchange #storeofvalue #btc