Final answer:
Cryptocurrency and U.S. dollars stored on phone apps both serve as a medium of exchange and store of value, with the major difference being the widespread acceptance and use of USD for everyday transactions compared to cryptocurrencies like Bitcoin.
Step-by-step explanation:
When comparing cryptocurrency and U.S. dollars stored on phone apps, both indeed share similarities such as being a store of value and a medium of exchange. However, while USD easily fulfills the roles of store of value, unit of account, and medium of exchange, cryptocurrency faces challenges, particularly with the medium of exchange criterion. For example, Bitcoin is the most well-known and widely accepted cryptocurrency, yet it's still not as universally accepted as USD for everyday transactions like buying groceries.
The value of cryptocurrencies is governed by market forces, as they are not fiat currencies and not issued by a central bank. Cryptocurrencies are also maintained in a decentralized manner and can be affected by government regulations within specific borders. While cryptocurrencies have gained significant traction globally, their function as a conventional medium of exchange remains less common.