For the foreseeable future, I would argue no. Bitcoin is a new type of electronic money created by a software engineer (Satoshi Nakamoto) in 2009. Bitcoins are not controlled by a central bank, but rather are created by users who generate new Bitcoins when they use their computing power to verify and process Bitcoin transactions (a process known as “mining”).

The answer to the question on whether Bitcoin will become a common currency of the world turns, to me, on whether Bitcoins satisfy the three key functions of money (medium of exchange, unit of account, and store of value). It is a medium of exchange. Fees are low (certainly when compared with using credit cards), transactions can be made anonymously (for those who value their privacy).

But Bitcoins are not good units of account or stores of value. The price of Bitcoins is very volatile (over seven times as volatile as the price of gold, and over eight times the volatility of stock market indices such as the S&P 500). For example, in 2011, the price of Bitcoins fluctuated between 30 cents and $32. It rose to $255 on April 10, 2013, and fell all the way down to $55 on April 17. By November of the same year, it was up to $1125. Today it is worth about $1,365.

High volatility means Bitcoins do not function well as a store of value or a unit of account and so its use is likely to be severely limited in the foreseeable future.
Any ideas???