Is Bitcoin considered money? 💰
💡 Daily Reminder: Stay humble, stack sats
Bitcoiners,
Here are the characteristics of money so you can compare other forms of money to Bitcoin and ultimately determine which is the best form of money for yourself:
There are 6 key characteristics of sound money:
Durability - the ability of a good to retain its original state over time.
Portability - the ability to be easily moved around.
Divisibility - the ability to be broken into smaller amounts without losing value
Fungibility - the ability to be substituted or interchanged with anything identical in type, nature, form, value, or function.
Scarcity - a limited supply to ensure that its purchasing power will remain stable.
Acceptability - any good that is widely accepted as final payment.
The 6 key characteristics applied to Bitcoin
Durability
Bitcoin is the most durable form of money because it cannot be destroyed and the network has an uptime of 99.9%. Cash money can be easily torn or burned.
Portability
Bitcoin is the most portable form of money because it can be transferred anywhere in the world and reach a final settlement within ~10 minutes. Wire transfers across the globe can take 1-5 days to reach final settlement.
Divisibility
One bitcoin is able to be broken down into 100,000,000 smaller units called Satoshis without compromising its value. It is hard and costly to make small amounts of pure gold for micropayments.
Fungibility
Counterfeiting bitcoin is impossible and any amount of bitcoin can be swapped for an identical amount of bitcoin. Gold can be diluted without notice to the naked eye.
Scarcity
Bitcoin is the scarcest asset ever known to mankind with a total supply of 21 million bitcoin to ever exist. There are trillions of dollars added to the banking system every year with no total supply set.
Acceptability
Bitcoin is following the adoption curve of many similar technological advances and is trending toward global acceptance this decade. Other forms of fiat currency are all becoming less acceptable worldwide compared to the US dollar.
Happy Monday,
-Pod
PS. Credit to NYDIG’s article for most of today’s content.
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Eric Podwojski
Founder, Bitcoin EDU
Twitter:Â @epodrulz
Disclaimer: This should go without saying: This is not financial advice. This is not investment advice. I write this newsletter for education and entertainment. Act accordingly.
