Unit of Account

A Unit of Account is a standard measure used to assign value to goods, services, or assets, enabling consistent pricing and financial comparison.

How It Works

As one of the core functions of money, a unit of account allows people to price items, record debts, and track income or expenses. In traditional finance, currencies like the U.S. dollar or euro serve this role. In crypto, assets like Bitcoin or stablecoins can act as units of account within specific ecosystems, although volatility can limit their broader use.

Why It Matters

Without a stable unit of account, it’s hard to compare prices or make long-term financial decisions. In the crypto world, achieving widespread use of a digital asset as a reliable unit of account is a major step toward mainstream adoption and economic integration.