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The Monetary Future Blog Header


The Future of Digital Currency Exchanges

Thu, 05 Jul 2018 05:45:33 GMT

By Globitex Medium Friday, January 26, 2018 https://medium.com/@globitex/the-future-of-digital-currency-exchanges-cb74be8c6655 Board Chairman, Jon Matonis, and Managing Director, Liza Aizupiete, both co-founders of Globitex spoke at the Cryptoeconomy Conference in London on January 26, 2018. Jon: I want to start off by saying something about the three functions of money. If anyone takes an Economics 101 class, the first thing you learn in monetary economics are the three functions of money. You have a store of value, a medium of exchange and unit of account. Those three functions are required for what economists refer to as a functionary monetary unit. Now the confusion around it though is that they don’t all start at the same time. They don’t start with unit of account and go backwards, there is a specific sequence to these functions of money for it to evolve into a successful currency. An example with Bitcoin was the first transaction, the famous pizza transaction which would be about a $79 to $80 million pizza right now. Actually it was two pepperoni pizzas. But that’s the current value of the Bitcoin that was exchanged for that transaction. It was a transaction from Florida to London. The reason people take something in exchange as a medium of exchange is because they believe that it has value for them after they accept it. They may not want to hold it but they may want to exchange it obviously for something else. It starts with store of value...