When Bitcoin first appeared in 2009, the world was divided about the idea of a decentralized currency that wasn’t controlled by any government or bank. It took years for the cryptocurrency to become recognized as a legitimate form of money and even longer before it grew into something that millions of people would consider an investment. But it has long since outpaced the doubts. From trading for cents to becoming a trillion dollar asset, Bitcoin has shown its strength and captured the minds of millions.
Commonly described as “digital gold” Bitcoin has transcended its use as a store of value. It stands for economic freedom, and transparency, and resistance to old forms of control. Its decentralization means it has no geographic borders, can’t be censored and is accessible to anyone with an internet connection.
Today, the influence of Bitcoin transcends speculation. It is fueling innovation in payments, DeFi and digital identity. The bottom line is the Bitcoin story, will you just watch it or be a part?
For something to be considered money, it doesn’t need to be officially recognized by anyone it just needs to meet certain characteristics. Money should be able to fulfill three main functions a medium of exchange, a unit of account, and a store of value. Additionally, good money must be easily transferable, divisible, durable, and scarce.
That’s why money works even without being backed by a government or institution what matters is that it meets these characteristics and performs the functions expected of money.Bitcoin is not gold, and it’s wrong to say so. Bitcoin is a superior form of money compared to gold. Gold failed as money because it wasn’t practical to use, which is why banks and paper fiat currencies appeared. Bitcoin doesn’t need banks or currencies to serve people as money.