Is Bitcoin Real Money? Somethings You Need to Know

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Yes, it is. Bitcoin is money for the internet. It is a digital commodity used as cash by thousands of people and machines around the world. It is used by machines in the form of automated tasks running Bitcoin.

Bitcoin is a free decentralized electronic currency which can even be used to buy items in local shops. Some people, indeed get paid in Bitcoin and use it to shop online, while others working abroad send Bitcoin home to help their families, regardless of where they are in the world.

Since its inception, it has provided an alternative to traditional government-issued currencies. There is no single, corporation, government or nation that controls Bitcoin. You need to know the following about Bitcoin;

Bitcoin Properties

Bitcoin was the first successful digital currency and its properties vary but its core areas of focus are that it is immutable, decentralized, censorship-resistant, scarce, open-source and permissionless.

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These properties make it beneficial and ideal for people all over the world. Besides, Bitcoin is more than a system to store and transfer value from one person to another; it is a computer network protocol, a decentralized global network of innovative, creative individuals who come up with new things daily.

For something to be used as money, it has to have these properties which Bitcoin evidently does.

Durability (Immutable)

Digital currency does not tear, wear or break. Even though you can buy some items which have bitcoin addresses stored on them, the durable state of the currency makes it worth being used as money.

Scarcity

For any currency to maintain its value, there has to be a finite supply. The bitcoin network has a rule deeply embedded and with a high degree of security that stipulates that:” there will ever be only 21 million bitcoins and no person can create more bitcoins.

The majority of the users on the network would have to agree to change that particular rule; which is highly unlikely given that they would have to agree to change the fundamental properties of the network. This makes bitcoin scarce and thus fundamentally of value (https://nakitcoins.com/).

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Divisibility

This currency is divisible up to decimal places meaning that, even on a worldwide scale you could transact in fractions of bitcoin.

If at any time the value increases it would mean casual daily spending will be in bits and milli bits. You could purchase your grocery using, for example, 50 milli bits.

Portability

A bitcoin can be stored on your computer, tablet or bitcoin specific hardware wallet. It is much lighter than carrying a wallet full of cash or a bar of gold. This makes it frictionless as well as weightless, meaning you can easily move around with it.

This has made it possible to move a significant amount of value across the world almost at no cost.

Conclusion

Money over the years has been understood in lay terms, as government-issued currency. However, there have been other forms of money used in various civilizations as a medium of exchange, such as jewels, wine, and gold presently. Every civilization through history has had their own form of money and bitcoin can therefore also be referred to as money.

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