May 17, · Without a stable value Bitcoin cannot truly be a currency. Rather it is a commodity asset that one trades, like gold or silver, in hopes that its value will rise and yield a trading profit. There. Dec 15, · Bitcoin can be used as money, in the way that a finite commodity (a very volatile one) can be used to trade for goods and services. But it has too many shortcomings from a technical point of view to adequately serve as real money. The following quote is from the r/Bitcoin subredditthat summarizes the problems Bitcoin currently has. Sep 26, · In that regard, the answer is that it is not money. While bitcoin can be exchanged for just about any fiat currency, it is certainly not being accepted by everyone. Only other individuals who willingly engage in a bitcoin transaction in exchange for fiat currency, or for goods and services, accept bitcoin.
Bitcoin isnt moneyBitcoin is Not And Never Will Be 'Money'
The difference between currency and money is important because the global economy is increasingly unstable under a process based on fiat induced debt. Money and currency have similar properties:. Money and Currency have the same components other than one very important one. Money has the ability to store value. All Fiat currencies do not store value.
And we all know that is not possible. But to show you the real difference, 1 ounce of gold or silver in can still purchase the same items today. Currency is everything money is, except a store of value over a long period. That is the difference between currency and money. Money is a stable store of value and maintains consistent purchasing power over time. Fiat currencies are built on trust. Despite the volatility, gold has been able to maintain its value for centuries while currency has been devaluating since its first appearance.
In this sense, Gold is a much more effective way of storing value. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies. Wallet in cloud: Servers have been hacked.
Wallet on computer: You can accidentally delete them. Viruses could destroy them. Though each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed — only their wallet IDs.
No one knows what will become of bitcoin. It is mostly unregulated, but some countries like Japan, China and Australia have begun weighing regulations. Governments are concerned about taxation and their lack of control over the currency. Why bitcoin? Mises said that we subjectively evaluate money by examining the objective prices that already exist. In other words, when you wake up this morning you know that one US dollar is going to buy you 6 ounces of milk.
You know that because that is what the market objectively determined when you went to sleep last night. Furthermore, when you go to bed tonight you will know how much milk one US dollar will cost from an objective standpoint.
Therefore, when you wake up tomorrow morning your subjective value will be based on that same exchange rate. Yet there is no infinite regression. At some point far back in history, money first emerged as a medium of exchange out of a pure barter economy. Therefore , there is a definitive starting point of this regression, and the theorem is intact.
Thus, the emergence of a fiat currency establishes trust in the general population. This will be entirely dependent on the confidence of market participants. Theoretically, if trust increases and becomes widespread, volatility will decrease. We are in a very uncertain time now for cryptocurrencies and for bitcoin.