Bitcoin still functions mostly outside the official legal and institutional framework supporting
traditional forms of money.
But becoming the global money has been the founding desire of its creator, Satoshi Nakamoto, and its most faithful techno-libertarian adherents.
Thus far, national and global policy-makers, regulators, and courts are not yet sure how to
approach cryptocurrencies or its first-born: Bitcoin.
And 24/7 speculation around Bitcoin has undermined its effectiveness as a payment system.
Understanding the relationship between money and a payment system is crucial for
appreciating what is necessary in establishing a successful global money, which is the whole point of Bitcoin.
Bitcoin’s public acceptance as global money depends on the trust:
(i) that its issuer is capable of and will maintain the money's value over time; and
(ii) that the money will be available even in times of financial stress; and
(iii) that the money is capable of discharging monetary obligations; and lastly
(iv) that the money's functionality and convenience of use is reliable.
These essential aspects make-up what is money, which in turn hinges upon the surrounding institutional and legal framework supporting that money, and this includes the applicable payment system.
All this points to the key query about the future of Earth’s money: Can Bitcoin fulfill the these requirements of global money in its drive to become a world currency?
Find out on Emir Phillips - American Pragmatist.
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