The unit of account definition is quite similar to the measure of value related to either digital currencies or fiat currencies. Using the unit of account, one can easily correlate the value of things.
Understanding the term
A unit of account is closely related to a financial instrument’s long-term store of value and it is used to evaluate various products by comparing their values in a particular currency (fiat or crypto). In the case of cryptocurrencies, only Bitcoin can be seen as a relatively better unit of account due to its increasing demand due to scarcity and overall foreseeable market prices. But taking Bitcoin as a unit of account is a statement that could be up for debate. According to many experts, Bitcoin is a better medium of exchange or an investment asset than a unit of account.
In the Bitcoin whitepaper created and distributed by the anonymous creator, the possibility of BTC being used as a unit of account was presumed. But as it turns out, it would be very complicated to utilize the world’s biggest cryptocurrency in terms of market capitalization as a unit of account.
Financial experts do not consider cryptocurrency a standard unit of account. The reasons behind this unsuitability are the wildly fluctuating prices and an ever-changing supply of tokens.