Can Bitcoin Be Considered Money Or Not?
The cryptocurrency enthusiasts and blogger, Beautyon has published a new blog post in which he explains why it is absurd to consider Bitcoin (BTC) as money. He said that Bitcoin represents an “unprecedented paradigm shift” and that it is not possible to understand the full potential of this technology.
Bitcoin And Email; What Do They Have In Common?
In this blog post, Beautyon explained that we are currently using technologies that are still live today on the internet. At the same time, there are some technologies that have already been replaced for more efficient ones.
For example, there are email applications that use several cloud-based computing services and that offer many advantages over dedicated emails with their own local storage. He went on saying that Bitcoin has the potential to transform the way in which people transfer money all around the world.
Beautyon explains about it and about how we consider and treat Bitcoin:
“Thinking about Bitcoin as money is as absurd as thinking about email as another form of sending letters by post; one not only replaces the other but it profoundly changes the way people send and consume messages. It is not a simple substitution or one-dimensional improvement of an existing idea or service.”
The blogger also explains that it is not possible to compare Bitcoin to traditional financial market assets since it works in a completely different way. He has also explained that once Bitcoin moves value to recipients, it needs to be read out. That means that Bitcoin must be converted back into money in a similar way as the letter is displayed to its recipient in an email.
The blogger explained that the digital asset can only be effective as long as the value of the digital asset does not go to zero. As people are currently transferring value in a decentralized way, it is necessary for Bitcoin to have a non-zero value. However, he says that the virtual currency has no intrinsic value. Nonetheless, this cannot be stated with 100% confidence since the digital asset uses proof-of-work (PoW) as a consensus algorithm that consumes large amounts of energy and that allows the network to keep running.