Cryptocurrencies noob think through - Does Bitcoin have distinctive features of money?
Does Bitcoin have distinctive features of money?
I’m a noob in the cryptocurrencies world, I admit that. But I’m not ashamed of that. This gives me the opportunity to think and ask questions. The topic comes to my mind recently - does Bitcoin have distinctive features of money? I know that probably someone already answered this somewhere, but why not to analyse by myself?
I started from what we all called money. Money should have specific attributes, right?
It should:
Following this lead, the first thing meeting those criteria that came into my head is gold. Simple and obvious. It can be used as means of exchange and payment. It can be a measure of value. We can define how many gold coins or ounces is needed to buy anything. It is lasting because it’s not corroding. It is fungible because every one-ounce coin is identical to another one-ounce coin. It is easy handheld because even the small piece of gold represents a big value. There are no doubts that it is divisible. And the most important - it keeps value in the long term because its amount is naturally limited.
And what about Bitcoin?
Conclusion
Of course, Bitcoin has several strong pros - no doubts about that - but I think that at this point, it can be determined as a mean of exchange. To get the status of money it needs to become commonly accepted and its stability should be known in the long term.
Discussion
What is your opinion? Am I completely mistaken in my noob considerations? Please share your thoughts in comments, but I beg you - be gentle for me :)
That is true that you need internet access to make transaction, for sure it is less convienent that normal cash. in my opinion bitcoin needs to be more stable. Now is good for gambling, but not for long term investments. And in my opinion this is actually real problem of all cryptocurrencies..
But I think it isn't possible to "stabilize" Bitcoin. This is the deflation currency, that is, it will always be insufficient and prices will rise.