Bitcoin is something radically new. Nothing like Bitcoin has been possible until now. I would go so far as to consider it
sui generis; "in its own class". This makes it important to understand what Bitcoin actually is before we try to describe it to others.
We're getting a good handle on the code, and of course on Bitcoin's function and utility, but what words should we use to describe Bitcoin itself? There has been some debate in other threads [mostly my doing] over how it is like/not like money, cash, dollars, etc. I'd like to start this thread by focusing on the term "money", and play Devil's avocate by asking for your best arguments that Bitcoin IS money.
My legal dictionary states "In usual and ordinary acceptation it [money] means gold, silver, or paper money, used as circulating medium of exchange, and does not embrace notes, bonds, evidences of debt, or other personal or real estate." [cites omitted]
Wikipedia says "Money is any object that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally, a standard of deferred payment." [cited omitted]
Webster's Online Dictionary defines money as:
- 1. The most common medium of exchange; functions as legal tender; "we tried to collect the money he owed us".
- 2. Wealth reckoned in terms of money; "all his money is in real estate".
- 3. The official currency issued by a government or national bank; "he changed his money into francs".
- 4. A piece of metal, as gold, silver, copper, etc., coined, or stamped, and issued by the sovereign authority as a medium of exchange in financial transactions between citizens and with government; also, any number of such pieces; coin.
- 5. Any written or stamped promise, certificate, or order, as a government note, a bank note, a certificate of deposit, etc., which is payable in standard coined money and is lawfully current in lieu of it; in a comprehensive sense, any currency usually and lawfully employed in buying and selling.
- 6. In general, wealth; property; as, he has much money in land, or in stocks; to make, or lose, money.
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I maintain that per these definitions, Bitcoin cannot possibly be described as "money". And further, I think that those who do describe Bitcoin as "money" are doing this community a disservice.
But that is just my point of view. Are there any that can convincingly argue otherwise, that Bitcoin IS money?
Well, I understand your point of view but don't agree. Money is a term that can be used in several contexts and is hard to define. However, currencies are something that is easier to talk about, and they are accepted as being money. Are bitcoin a currency or an asset?
I would argue that bitcoin has all the features as a currency and therefore is money. This site goes into details on what money, currency, and bitcon is:
https://cryptorunner.com/what-is-bitcoin/ There you see the distinct features of a currency which are:
"1. It should act as a means of payment. The fact that Bitcoin serves as a means of payment is proven because you can transfer Bitcoins between digital wallets in just a few minutes around the world. For example, it may take several days or not work at all to transfer money between different countries with regular currencies.
2. It should act as a counting unit. Unlike common currencies that only can be divided into cents (0.01) at most, Bitcoin can be divided into what is called satoshi, which is currently one hundredth of a million (0.00000001). The Bitcoin protocol can also be updated in the future for an even smaller breakdown.
3. It should preserve the value. As we have said, central banks can manipulate their fiat currency by changing the amount and thus also the value. This doesnt work with Bitcoin as the supply is limited with a certain amount of Bitcoins (21 million) that will be created until 2140."
I think that most people would agree that bitcoin is a currency and therefore also money. The only valid argument against that is that bitcoin doesn't act as a means of payment everywhere. However, all fiat currencies neither work as a payment everywhere on earth. In most cases, you have to convert your currency to the local "money".
If someone has another valid argument against bitcoin being money, please share it!