Facilitating credit is the most important function of Money: A role for Bitcoin?

Abstract

Money serves several roles: a medium of exchange to buy and sell without bartering; a unit of account to price goods consistently; a store of value to save purchasing power over time; a means to defer payment of future obligations like credit or loans. An agent based computer simulation program determine quantitatively the relative importance of these services. The main results showed that money for credit was by far the feature that achieved the largest overall production of wealth in the simulated societies. A conclusion from this study suggests that fomenting the use of internationally tradable currencies such as Bitcoin seems to be most promising pathway for international economic growth in the near future.