Glossary
Medium of Exchange
1 min read
A medium of exchange is a type of good that facilitates the exchange of other goods and services within an economy. Historically, items like shells, beads, and gold were used as a medium of exchange. These items lacked the necessary characteristics of money to remain efficient mediums of exchange, including scarcity, durability, portability, fungibility, and divisibility.
Today, fiat money is the most common medium of exchange in the global economy because it is highly-liquid and widely-accepted. Bitcoin is widely used as a medium of exchange in regions with political and financial instability and in black markets. As Bitcoin becomes more liquid, it has the potential to become a widespread medium of exchange.