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RE: Is Bitcoin Money?

in #bitcoin7 years ago

Many gold bugs argue that "real money" needs to have some real use, like gold's utility for electronics and jewelry. But central bankers and academics have responded that money is really just an agreement. In other words, whatever is accepted as a medium of exchange is necessarily "money." And Bitcoin seems to prove the point that money need not have any other utility. It needs to be accepted. And the question as to whether it will hold value, or serve as a store for value, is shown by your inflation chart to be entirely a function of how much money is put into circulation. Bitcoin itself cannot be inflated indefinitely. It is thus scarce, like gold. But there is inflation in the cryptocurrency space by virtue of many new coins being circulated. This is great, because it will make it impossible for the central bankers to corral all crytpotcurrencies into their domain. But it will also mean that the market will determine which crypto will be the cream that rises to the top. Bitcoin definitely has a great headstart.