The criteria for currency is listed as “Currency, fiat money, cash. Issued by a monetary authority” on tokenized assets page. Fiat money and cash are not currency.
“Something that people don’t seem to understand well is that money is not in itself a valuable.” CSW
This statement is incorrect and has caused a lot of confusion about what bitcoin is and what it could become.
There’s a debate going on right now about if bitcoin is a store of value or if it is cash. There is a major problem with framing the question in this way.
Cash IS a store of value.
Why is cash a store of value? Because it contains socially objective value in the form of counterfeit-resistant highly decorated pieces of paper, paper alone is a store of value and anyone who hasn’t had it on a trip to the bathroom can tell you just how much value it has at times. So, is bitcoin cash or a store of value doesn’t work, again cash IS a store of value.
The root cause of this misunderstanding is the failure to recognize what money is, what currency is and how they are different.
Money is a unit for the measure of value that contains socially objective value, examples would be gold coins, silver coins, pounds of salt in the past, paper notes, BSV (possibly- in the future).
Currency is a unit for the measure of value that is solely a representation of value, examples would be USD digital balances or IOU’s in any form.
A simple way to tell if what you’re looking at is money or currency is to ask, ‘If redemption in the market were to be suspended, would what I have still be valuable in utility?’
There is a big misconception that money is preferred to currency in use, but science has proven that units of measure should not contain the properties they represent. Currency has a much greater utility than money for exchange, in the same way that inches have a much greater utility than inchworms. Money is good for storing value because it has objective social value. Currency is highly preferred for transferring value.
The way the question should be framed is “Is bitcoin money or is it currency?”
Bitcoin can never be currency because it derives its value from its utility and is not solely a representation of value. Bitcoin can not currently be used as money because its utility value has not been established. Bitcoin is not money, bitcoin cannot be currency, bitcoin is a commodity.