Thread: bitcoin
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Old 24-05-2021, 10:30 AM
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Quote:
Originally Posted by Spindle View Post
So is it currency or an investment? If I bought a takeaway on it now, and the price rockets next week, or collapses, then the price I pay at a slightly different time is stark isn't it? Is it going to stabilise, at all?
For something to be money it has to essentially provide three key features, being a means of exchange, a store of value, and a unit of account (i.e. essentially a common measure of the value of goods).

Lots of things can meet one or more of these criteria, but to be money they need to meet all three. If something doesn’t meet all three then they are not money but something else (potentially an investment, but it could equally be a worthless piece of paper - take hyper inflation in Zimbabwe as an example, the currency ceases to become a mechanism to store value, so people stop using it, and Zim dollars become worthless pieces of paper).

For me, Bitcoin partially meets the first criteria, but the volatility means it cannot meet the second two. So you have to view it as an investment rather than money / currency.
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