Bitcoin is money , a decentralized peer-to-peer cash.
Money was created at the beginning of human civilization, when people realized they couldn’t always trade goods for goods because barter has limitations. For example, if I catch a rabbit and someone else grows potatoes, maybe they don’t want a rabbit at that moment, or my rabbit is worth more than the amount of potatoes they have, so it’s hard to agree on an exact value for the trade. Also, I can’t divide the rabbit into smaller parts without completely ruining it as a good for exchange.And then people realized that they needed a universal medium of exchange, something they could trade for goods and services whenever they wanted. This medium of exchange had to store value over time, so that they could use it for trade in the future as well.

So, that is money  a universal good that serves as a medium of exchange, a measure of value, and a store of value.
For example, fiat currencies like the dollar, euro, and others are not a good form of money because they do not fulfill the function of storing value. Due to the constant printing of new money, they lose value, and this process is called monetary inflation.

In economics, there is something called Gresham’s Law, which states that if two forms of money are in circulation, for example the dollar and Bitcoin, people will tend to spend the weaker form of money that loses value first, and hoard the form of money that gains purchasing power.As long as they earn their salaries in fiat currencies, they will use it as a medium of exchange, while Bitcoin will be used as a savings account.Nobody wants to spend money that is gaining purchasing power; instead, they will spend money that is losing value first.


We are still in the early stages, where most people do not understand what money is, so they don’t understand Bitcoin either. Most people don’t realize that Bitcoin is money whose purchasing power will always increase, so they don’t save it. Also, merchants don’t understand this and therefore don’t want to accept this form of money, thinking it is some kind of bubble or speculation. But as time goes by and Bitcoin gains purchasing power, all merchants will want to accept this money as a medium of exchange. You will see more and more signs saying “We accept Bitcoin,” because everyone wants money whose purchasing power grows, not decreases.