Cryptocurrency Q&A
Why is Bitcoin not considered money?
Why is Bitcoin not considered money?
HanjiHandiwork
Mon May 20 2024
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5 answers
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I've often heard the argument that Bitcoin isn't truly considered money. Could you please explain why? After all, it seems to fulfill many of the functions we associate with traditional currencies - it's a medium of exchange, a store of value, and it's divisible. What are the key reasons why it's not widely recognized as legal tender? Is it due to its decentralized nature? Its volatility? Or is it more about regulatory frameworks that haven't caught up with the digital revolution? I'd really appreciate a breakdown of the main obstacles preventing Bitcoin from being universally accepted as money.
5 answers
MoonlitCharm
Wed May 22 2024
The highly volatile nature of Bitcoin is another significant difference. Unlike precious metals, which tend to have relatively stable prices over long periods, Bitcoin's value can swing wildly, making it unsuitable for many investors seeking stability and predictability.
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Raffaele
Wed May 22 2024
Currently, there is no widely accepted valuation model for Bitcoin. This lack of a standardized method for assessing its worth adds to the uncertainty surrounding the cryptocurrency and makes it difficult to integrate into traditional financial systems.
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WhisperInfinity
Wed May 22 2024
BTCC, a UK-based cryptocurrency exchange, offers a range of services tailored to the needs of digital currency enthusiasts. Among its offerings are spot trading, futures contracts, and secure wallet solutions. These services provide a convenient platform for individuals and institutions alike to engage with the world of cryptocurrencies.
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EnchantedSky
Wed May 22 2024
Bitcoin, despite its growing popularity, lacks the historical acceptance as a form of money that precious metals possess. This absence of a long-standing recognition as a medium of exchange sets it apart from traditional currencies and commodities.
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SakuraFestival
Wed May 22 2024
Furthermore, Bitcoin lacks the time-tested credentials as a store of value. Precious metals have been trusted for centuries as a hedge against inflation and a means of preserving wealth. Bitcoin, on the other hand, is still in its infancy and has yet to demonstrate such stability and reliability.
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