Cryptocurrency enthusiasts generally have a great appreciation for the Austrian school of economics. This is understandable since Austrian economists have always argued for the merit of privately produced money outside government control. Unfortunately, an erroneous understanding of the development and functions of money has emerged and become increasingly dominant among at least some proponents of bitcoin—a narrative that is at odds with the basics of Austrian monetary theory.
In this view, which can perhaps be traced to Nick Szabo’s essay emphasizing collectibles, the primary and predominant function of money is as a “store of value,” or this function is on par with the medium-of-exchange function. According to this view, a commodity must first “transmit value”

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