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Author: Admin | 2025-04-28
A generally accepted medium of exchange. While it is obvious that bitcoins are media of exchange, it is not quite clear whether they are also money. Are they generally accepted? I don’t think that this is presently the case. Most people are not even aware that bitcoins exist, and most of those who have heard of them do not at present consider using them. Things could change, especially if price-inflation rates pick up, but at present we are not yet there.Trace Mayer: Yes. Bitcoin is money because it is limited in amount by internal characteristics enforced by the laws of mathematics and thermodynamics that is not subject to counter-party risk or anyone's liability and it also functions as a currency because it acts as a medium of exchange.Pippa Malmgren: The answer is "Yes". Money becomes real when people have faith in it. Governments have no monopoly on that which is why they spend a lot of time putting many symbols of faith and trust on the currency from pictures of sovereigns like the Queen or the President to hidden symbols of power like pyramids and seals. They would not need to if it stood on its own. Faith can be earned and it can be lost. The problem with bitcoin is that people are afraid a power outage or a hacker or bad management could erode or destroy the value of a bit coin. But, then again, governments are doing their best to erode confidence in fiat money too.Robert P.
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