Comment False alternative: store of value vs exchange (Score 1) 398
I just want to point out that a good cannot be store of value unless it is also a medium of exchange. Here's why. Suppose you have some coins (like gold coins, or bitcoins) that you hold as a store of value. The only reason why these coins are valuable to you is that you know (or believe) that someone will accept them if you want to sell them. If someone did not want to accept them (i.e. _exchange_ something for them), they would have no _value_ for you. In other words, they cannot be a store of _value_ unless they have _exchange_ value.
The reasoning above applies to any good which does not have direct use value.