202.8 Lesson - establishedHistory

Screen: establishedHistory

Headline: An established history of being valued by society

Reward: 4

Text: This is because a well-established store of value is less likely to be displaced by a newcomer, unless it has a significant advantage over the established good.

Additionally, people are creatures of habit and will keep using what they already know.

Gold, for example, has a long history of being valued and has maintained its value over time. In contrast, fiat currencies, which are a relatively recent invention, have a tendency to lose value over time due to inflation.

Bitcoin, although it has only been around for a short time, has shown resilience in the market and is likely to continue to be valued.

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QUIZ

Question: What is the main reason that a long-established store of value could be displaced by a new arrival?

Answer: The new arrival has a significant advantage over the established good

Feedback: You are correct. A long-established store of value is less likely to be displaced by a new arrival unless the new arrival has a significant advantage over the established good

Correct: true

Answer: The established good has a longer history of being valued by society

Feedback: Sorry, but this is actually the reason that a long-established store of value is less likely to be displaced. Better luck next time

Correct: false

Answer: The new arrival is cheaper to produce

Feedback: Nope, wrong. Did you not pay attention in the previous lesson on scarcity?

Correct: false