Question

What are the three functions of money? Can something be considered money if it does not fulfill all four functions? Please give an example.

Would you consider Bitcoin money?

Answer 1

Answer : Money is used for exchange of goods and services .

Three function of money are :

• Money is used for the medium of exchange . It means that people have been used for purchasing goods and services.
• Money has store it's value. It means that retians it's value for exchange of goods and services.
• Money has unit of account .It is precisely accounting for the value of goods and services.
• Standard of deferred payment is also considered function of money.

Diamiond , Gold would be considered a form of money but it does not taken into an account all the function of the money. as it values has been changed and not used for exchange goods and services in the market.

Bitcoin money is a form of Electronic currency. Bitcoin money takes time to change into a currency. Firstly it convert into peso wallet and amount would be transferred into cash.It is considered as form of money.