I think a lot of folks don't really know these 3 functions of money and that is why they argue about whether btc is really money or not, well here is a brief to educate us all.
Money generally has three(3) functions, and anything that fulfils any of the 3 can be termed as money:
1. Store of Value (SoV)
This is when money is primarily used to preserve wealth over time, people hold it because they believe it will retain (or grow) in value.
Btc is strongly established here. As we often say, btc is ?digital gold?. This is because many investors, institutions, and even nations now view it as a hedge against inflation and fiat devaluation. BTC very limited 21M supply and die-hard hodlers have solidified this reputation as of btc as SoV.
2. Medium of Exchange (MoE)
This is when money becomes a widely accepted payment method and people use it to buy goods and services.
BTC is partially there. While it is still limited by volatility and transaction fees, we all know adoption is growing: you can now buy coffee, flights, phones, and even pay rent or salaries in BTC via services like BitPay, Lightning Network, and corporate integrations. Then lastly
3. Unit of Account (UoA)
This is when prices of goods and services are measured and denominated in that currency, not converted from another one.
Btc is not yet here, the world still measures BTC?s value in USD terms, but as I and many others believe that one day hyperbitcoinization will happen, at that time, sats will become the standard pricing unit.
I think btc has sufficiently mastered the SoV, is now progressing through MoE, and maybe soon enough, we will see btc as UoV, the ultimate stage where Bitcoin becomes money itself.
Question:
1.Whats your take on hyperbitcoinization?
2. Do you think this will ever happen or its just bubble?
Linkback: https://www.forex.zone/general-cryptocurrency-discussion/32/the-3-functions-of-money-the-stage-btc-is-currently/4851/
