6. Functions of Money: Why Bitcoin Is More Than Just Paper Money does more than just buy thingsâ”it serves three key functions that keep economies running. But does today’s money still work, or is Bitcoin a better alternative? First, money is a store of value. It holds its worth over time, allowing people to save and invest for the future. Without it, people would need to store valuable goods, like gold or grain, which could spoil or lose value. Second, money is a medium of exchange. Before money, people had to trade goods directly, making trade difficult. With money, anyone can buy and sell easily. Third, money is a unit of account. It helps people compare prices and measure value. A five-dollar sandwich and a fifty-dollar meal instantly show the price difference.
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