Buy Bitcoin here
  • Crypto
    • Bitcoin News
    • Ethereum
    • Altcoin
    • Blockchain
    • Blockchain Companies
    • Cryptocurrency Exchanges
    • DeFi
    • Regulation
    • Cointelegraph news
    • Press Release
    • ICO News
      • ICOs Review
      • Upcoming ICOs
      • Scam
  • Education
    • CryptoTicker Starter Kit
    • Blockchain For Dummies
    • Crypto entrepreneurs
    • Free Resources
    • Events
    • Events Review
  • Prices
  • Exchange Comparison
  • Newsletter subscribe

  • News

    • Bitcoin News
    • Altcoin
    • Regulation
    • Blockchain Companies
    • Blockchain
    • Cryptocurrency Exchanges
  • News

    • Ethereum
    • Events Review
    • ICO News
    • Press Release
  • Education

    • CryptoTicker Starter Kit
    • Education
    • Blockchain For Dummies
    • Crypto entrepreneurs
    • Free Resources
    • Events
  • Cryptoticker

    • About us
    • Advertise
    • Media Kit
    • Submit your Press Release
    • Contact
    • Membership Login
  • Social Media

    Facebook Twitter Telegram Youtube
    • Newsletter
  • Crypto
    • Bitcoin News
    • Ethereum
    • Altcoin
    • Blockchain
    • Blockchain Companies
    • Cryptocurrency Exchanges
    • DeFi
    • Regulation
    • Cointelegraph news
    • Press Release
    • ICO News
      • ICOs Review
      • Upcoming ICOs
      • Scam
  • Education
    • CryptoTicker Starter Kit
    • Blockchain For Dummies
    • Crypto entrepreneurs
    • Free Resources
    • Events
    • Events Review
  • Prices
  • Exchange Comparison
Starter Kit Membership Search
English
English Deutsch
Menu
Search


Bitcoin News

The Bitcoin Code: Can Bitcoin be Used as Money?

Posted On January 17, 2020 Taha Zafar 0

  • share 
  • share 
  • share 
  • tweet 
  • share 
  • share 

Money generally refers to the medium “used for buying/selling” or in another words, what we use as a payment for trading goods or service, or settling debts. The most prevalent form of money today is FIAT or paper currency, issued by central banks. Bitcoin, the world’s leader in cryptocurrency market capitalization, is another prime candidate for money. However, how does it compare to FIAT money and can it satisfy the general qualities of money?

From an economic point of view, for an thing or object to be considered as money, it must have the following characteristics. It must be durable, portable, divisible, uniform, supply must be limited and it must be acceptable widely. Let’s examine Bitcoin on each of these characteristics.

Money Characteristic: Durable

A currency must be durable, meaning that it should be able to survive adverse environmental conditions and remain in a usable state for long periods of time, surviving general wear and tear of everyday practical use. FIAT currency is able to remain in service for long time, because of its material choice and manufacturing method, however it still degrades over time. Bitcoin has no such limitation, since its all cryptographic code capable of surviving to indefinite time and not a physical object like paper money.

Money Characteristic: Portable

Any type of money should be portable, should be easy to carry, so it can be used in everyday life. FIAT currency is lightweight and easily carried in pockets and wallets. Bitcoin too, can be carried portably, in hardware wallets (USB size), in mobiles, laptops and even on paper wallets (private key written manually) and brain wallets (deterministic mnemonic phrases remembered by someone which can be used to access a Bitcoin wallet).

Money Characteristic: Divisible

Money also should be divisible, so it can be used for small transactions also. FIAT money is usually divided into 10, 20, 50, 100, 500, 1000 apart from coins. Bitcoin goes several steps further and is divisible upto 8 decimals with the smallest unit being called one satoshi (sat).

Money Characteristic: Fungible

Money should be fungible, meaning that basic units should be identical to one another. For instance, a dollar bill is equivalent, identical and exchangeable effortlessly with another one dollar bill. Bitcoin basic unit which is sat (short for satoshis) is also identical to another sat.

Money Characteristic: Limited Supply

The item or object being used as money should have limited supply, to have a certain value. This is where FIAT money is actually at a massive disadvantage, since it can be printed endlessly by the Central bank, without any specified limit, resulting in paper currency losing value. Bitcoin on the other hand, has a fixed limited supply of 21 million.

Money Characteristic: Wide Acceptance

Any currency has value, because many people consider it to be of value. FIAT currency is same, by itself it doesn’t have any intrinsic value, because its not a valuable object. It has value, because the government allows it to be the legal tender, to settle all debts public and private. Bitcoin has an additional feature, unlike FIAT money which can be printed at a minor cost, it’s expensive and resource intensive to mine Bitcoins, since miners have to process complex mathematical problems to mint it, using specialised hardware and large amounts of electricity. Further, Bitcoin has shown high adoption rates since its inception in 2009 and is the best performing asset of the decade.

  • share 
  • share 
  • share 
  • tweet 
  • share 
  • share 

It is super easy to buy Bitcoin. Just take a look at our exchange comparison!

 

This post may contain promotional links that help us fund the site. When you click on the links, we receive a commission - but the prices do not change for you! :)

Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.

Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future. 

#Bitcoin code#fiat money#Money characteristics


More from Bitcoin News

Bitcoin Double Spend – Why Bitcoin Prices Crashed
Posted On January 22, 2021 Rudy Fares 0

In the past 24 hours, Bitcoin prices suffered a major correction in prices then recovered. A lot has been attributed …

Bitcoin Price Analysis: Should Buyers get ready?
Posted On January 21, 2021 Prasanna 0

The important question here is Will Bitcoin price go up? What happens to Bitcoin prices now? Will we observe a …

What does Joe Biden Presidency mean for the crypto market?
Posted On January 20, 2021 Robert Weiss 0

Today, on January 20, 2021, Joe Biden was sworn in and became the 46th president of the United States. For …

In order to support and motivate the CryptoTicker team, especially in times of Corona, to continue to deliver good content, we would like to ask you to donate a small amount. Independent journalism can only survive if we stick together as a society. Thank you


  • Top Broker

    Bybit
    bybit
    Review · Visit
    Plus500
    Plus500
    Review · Visit

    Top Exchanges

    Kraken
    Kraken
    Review
    Coinbase
    Coinbase
    Review · Visit
  • Newsletter subscription




  • News

    • Bitcoin News
    • Altcoin
    • Regulation
    • Blockchain Companies
    • Blockchain
    • Cryptocurrency Exchanges
  • News

    • Ethereum
    • Events Review
    • ICO News
    • Press Release
  • Education

    • CryptoTicker Starter Kit
    • Education
    • Blockchain For Dummies
    • Crypto entrepreneurs
    • Free Resources
    • Events
  • Cryptoticker

    • About us
    • Advertise
    • Media Kit
    • Submit your Press Release
    • Contact
    • Membership Login
  • Social Media












    Newsletter


  • Imprint
  • Privacy Policy
  • Non-liability Disclaimer
©2021 CryptoTicker

Share

Share stories you like to your friends