Executive summary: Can Bitcoin Become Money?
Bitcoin is money. Or isn't it? I analyze the three types of money, how money gets adopted, and whether Bitcoin can become money.
What you will learn:
- How money works and if Bitcoin is suitable to become money.
Executive summary:
- There are three types of money: commodity, fiat, and digital.
- Throughout most of history, humans used commodity money. Fiat is only a few decades old and digital money is brand new.
- Bitcoin's intrinsic value comes from being the most secure and decentralized type of digital money.
- Money adoption can happen top-down, bottom-up, or both.
- Bottom-up adoption is more likely for Bitcoin, but governments have little incentive to support top-down adoption.
- Hyperbitcoinization is highly unlikely, but several factors undermine trust in fiat: increased digitalization, loss of trust in institutions, fiat currency debasement, and network effects of crypto.
Full article:
Can Bitcoin Become Money? | CoinMarketCap
Is Bitcoin money? If not, can Bitcoin become money? When and how could that happen?
CoinMarketCap