Ask Leo: Should We Consider Bitcoin(BTC) a Currency?
A rare question is always asked, which is should we categorize bitcoin as a currency?.
Well there are so many publications, opinions as regards this and well the subject topic before we can categorize bitcoin as a currency there are some checks which needs to be looked into critically.
Since the existence bitcoin users|holders has made use of it for so many purpose some of these purpose which are as a medium of transaction, and also as a store value.
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In the recent publication by the Sweden’s central bank as they weigh in on this issue, in the writing they are trying to look into if the largest crypto asset according to market capitalization can be referred to as a currency.
As earlier state they try to derive this by placing their findings in categories which bitcoin has to meet for it to be regarded as a currency; store value, means of payment and unit account.
store value bitcoin as store isn’t really it because the store value is dependent on if it’s able to achieve it as a medium of exchange but regardless as we continue to see the adoption of bitcoin possibly it’s store value begins to grow.
means of payment no matter the dominance it’s has gathered over the years, still bitcoin is not widely accepted as a medium of payment more than credit/debit cards. Tho some countries has been in the fore front of legalizing it as a payment alternative but still it’s not widely accepted base of it’s volatility.
unit of account with bitcoin volatile nature it’s so impossible to have a static price, as the normal traditional currency. Give for example the United States dollar $1, the value of it will never change come today or Tomorrow it will defiantly remain the same.
In their words;
“Bitcoin generally does not fulfill the three functions and is thus not money, at least not in the sense that it functions as money in the traditional financial system and in society. Similar reasoning can be applied to many other cryptocurrencies.”
Posted Using LeoFinance Beta