The Functions Of Money
1. Medium Of Exchange
One could say money’s most important function is a medium of exchange. A medium of exchange is simply the facilitator of commerce to commence day-to-day transactions. For example, when you go to the grocery store to purchase food, you are parting with your paper money to acquire the food you desire. The grocery store will then be able to distribute the money you spent to stock up on more food. Todays, medium of exchange in local currency is not universal as countries have their own designated forms of currency and for the most part do not accept foreign currency for point-of-sale purchases.
Gold is a universal medium of exchange and is valued amongst all humans. With BitGold, you can internally exchange gold with counterparties all over the world for free once acquired.
Im very excited that BitGold is introducing corporate accounts where merchants can automatically settle the customer transaction in gold bypassing high-end exchange rates.
2. Store of Value
In order for money to be a fair medium of exchange, it must hold its value over time. If money cannot be stored for a length of time and not keep it’s present value upon transaction; it really only benefits the person exchanging the depreciating currency for goods or services.
As the consumer gets what it needs (i.e product or service) and the counterparty soaks in something that will buy less in the future. With fiat currencies today the time and effort it took you to accumulate the paper money wont properly represent your efforts in the future as fiat is prone to currency devaluations/depreciation's, in fact over a length of time fiat will always depreciates in value.
For the past 5000 years gold has always held its value over a length of time which in essence validates the time and effort us humans put in today without being eroded. With a form of currency such as fiat it's merely an asset of the party holding it and a liability of the bank issuing it (IOU). Now gold, is typically a form of money that is not a liability to any counterparties and its value can continuously be retrieved anytime.
BitGold allows you to have upward mobility, by accumulating an account of gold that protects you from the devaluations/depreciations of your local currency.
I love that BitGold has the option of redeeming the value of my gold onto a denominated fiat prepaid card so I can start utilizing gold's value at traditional point-of-sale anytime/anywhere around the world.
3. Unit of Account
Money also functions as a unit of account as this provides a unit measurement for the goods and services being exchanged. Just like a bank account, BitGold converts the value of your gold in multiple standard fiat value so you can always keep track of the value of your gold.
Im excited to see where this company is in 10yrs, and my savings account on their platform:)