Unit of account is an economic term used to refer to a property that is used as a standard unit of measurement. It is a financial instrument. In layman’s terms, it’s a property of money, making it possible to compare with valuable items such as houses, cars, and works of art. These items can be represented in the form of money, making their value comparable with the other.
The figures of financial statement are also represented by unit of account, i.e, the figures present in a financial statement have monetary units such as BTC, ETH, INR, USD, etc. Several countries use unit of account or store of value as a medium of exchange for several daily transactions. It can be the native fiat currency of the country or can even be a crypto asset, which is a store of value like Bitcoin. Although Bitcoin does serve as a store of value and unit of account given its secure and transparent nature, it is not entirely trusted by the government bodies because of its volatility and the market manipulation it suffers.