Comment: Where Money is a Medium

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Where Money is a Medium

In contemplating Bitcoin, I've come to see the distinction between what is a medium of exchange, and what is wealth. A medium of exchange is just a medium. It facilitates and exchange of wealth. So if I have a piece of paper that represents an ounce of silver, and I offer it (the piece of paper) as payment for your chicken, the piece of paper is the medium that facilitates the exchange of wealth (the silver for the chicken). If no medium of exchange was used, but there was an actual exchange of silver for the chicken, no money was used. The silver is just a commodity. I'm sure the "gold is money" crowd will disagree, but I no longer hold that gold is money. It is a store of wealth... no different from oil, grain, or sand. Money is only a medium that can facilitate the exchange of those commodities...
All that to say that Bitcoin appears to me to be a FAR superior form of money than current government / central bank / inflationary currency. It is, however, just money... As such, not necessarily a good store of wealth. Those who are trying to protect their wealth, Bitcoin isn't it. Those who would like to transact to the exclusion of central bankers / government, etc, Bitcoin looks great.
It seems to me that those who speak against Bitcoin appear to me not to have made the distinction between the medium of exchange and the store of wealth.