January 16, 2021

Why Bitcoin is not money. And his prospects in this direction

What do gold, silver, copper, shells, cows, skins, and freshly printed bills have in common? Well, it's clear that everyone these things at different times in different places (and some things everywhere) were or are money. But what makes money money, and can there be other things money?

In fact, for something to be money, it needs only two properties.

First, be able to stay in the right quantities.So, cows are an inconvenient medium of exchange. As long as you buy brides in Africa for them, everything is fine. But paying for something very expensive is already inconvenient, go roll out a thousand or a million heads, for example. But here specifically, bitcoin has no problems. The numbers in the computer's memory are ideally split to arbitrarily small values ​​and summed up to arbitrarily large ones.

Secondly, for something to be money, you need nota lot is not a little - but just a market where you can get the necessary goods and services for this something. Well, it is logical, if there is no place where a specific banknote can be exchanged for bread and butter, then what kind of money is it ?!

And here bitcoin has an ambush.Even on the first wave of his popularity, the authorities of various countries, incl. The United States immediately said unequivocally that it was prohibited to accept this thing as payment. Monetary surrogate and all that.

You can talk about the freehackers and other blockchain, but there is no official market where one could pay with bitcoins and is not expected. You can, of course, mumble about the black market and other darknet. But let's be realistic, the volume of sales in the official markets is orders of magnitude greater than the black markets.

Thus, you cannot (officially and legally) pay with Bitcoin and you never can. Change them to fiat currency and then please.

That is why the monetary prospects for bitcoins, ethers and other "types of currencies" are extremely vague.

Another question is that bitcoin is traded on exchanges andno one is in a hurry to cover these exchanges. They invest in it, earn money on it. Well, please. Do you like collecting and reselling (for normal money) numbers and pixels on the monitor to each other? For God's sake. Even though you can invest in Chupakeps and Magic the Gathering cards and organize exchanges around them. Only transactions, please, make out in fiat currencies.

Does this mean bitcoin will nevergrow, what is it zilch and all that. Actually no. There is a concept of social reality. We are sure that the tickets of the Bank of Russia are money because we all consider them money. And accordingly, we willingly accept them as payment for goods and services, confident that they will also be accepted from us. Residents of other countries, being in a different social reality, may consider them as cut paper.

So investors can create their own socialreality around assets. For example, consider this or that piece as a promising investment asset. Bitcoin is no worse than gold here. If everyone believes in his prospects, then why not invest.

Well, by tradition, I invite you to my cart, where there is no market, but there is common sense and traditional values.