1. Medium of exchange

When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange.

2. Store of value

Money must be able to be reliably saved, stored, and retrieve. The value of the money must also remain stable over time.

3. Unit of account

You can easy count in that. Money acts as a standard measure.It is necessary for developing efficient accounting systems.

Tiers -GREEN,ORANGE, RED

There are three function of money. I choose another three key attributes (Potential, Adoption, Power of third side) to help evaluates each form of money candidates. There are three tiers, GREEN, ORANGE and RED. Tiers of these 6 attributes can change in time. Usually you want convert your work and effort to something recognizable, rare, widely accepted, verifiable, easy dividable, fungible, transferable, durable, stable and collectible. From properties of money are mentioned five most important : dividable, durable, verifiable, transferable and rare. These tiers are fixed in time by nature of money candidates. Green 1 point, Orange 2 points, Red 3 points. Points are summed up and divided by 11 (attributes), result is SCORE (overall value). Less SCORE == better money. Nothing is perfect, this index should help you to choose right way. Please don't take this SCORE and site too seriously, it was created for fun and basicaly not showing nothing new.

Good, Average, Bad tiers of money

*Why this order? Murray N. Rothbard in his book "What has government done to our money?" put on first place "Medium of exchange" function, same Mises in The Theory of Money and Credit . I agree and it is most intuitive. Important is that "Unit of account" function is implication from first two functions.

Created and also reworked in February 2021. Update when I feel it needs a change.

GO TO SCORE:

SCORE 2021-202X

History and future:

Past version... February 2021

Actual version22.2.2022

Actual version...2023-2024Same as previous version

Coming...2025

Author: Jan Hložanka

If you have any question, advice, different opinion or you think web is outdated you are welcome to write me on, from social media i use only facebook (Honza Hložanka) :

hlozankajan@gmail.com

Sources:

https://en.wikipedia.org/wiki/Money

https://en.wikipedia.org/wiki/Gold

https://en.wikipedia.org/wiki/Bitcoin

https://positivemoney.org/2011/05/what-is-money/

https://www.investopedia.com/terms/m/money.asp

https://mises.org/library/denationalisation-money-argument-refined

https://mises.org/library/what-has-government-done-our-money

https://web.archive.org/web/20050404081557/https://www.econlib.org/library/Mises/msTContents.html

https://www.visualcapitalist.com/all-of-the-worlds-money-and-markets-in-one-visualization-2020/