Bitcoin was created as the first peer-to-peer electronic cash system, and as a result, a whole digital asset industry has sprung up since then. Despite the longevity and resilience of the cryptocurrency, there is still a debate among policy makers, regulators, and even investors as to whether the asset class should be defined as „money“.
A recent survey by the International Monetary Fund found that an overwhelming majority of respondents say “yes” that Bitcoin and other altcoins are actually money and should be viewed as such.
Bitcoin and the evolution of hard money
Bitcoin price is trading below $ 40,000, a few thousand from its recent high. And while a drop of this magnitude would have spawned obituaries about bitcoin in the past, today it’s seen as an opportunity to buy bitcoin cheaply.
Investors and institutions are voting with their capital that the cryptocurrency will outperform the dollar and help offset the coming episode of hyperinflation. Bitcoin has risen more than 500% against the dollar since the outbreak of the pandemic, and while the short-term trend may take a breather, the long-term trajectory is always up.
BTC is now the 16th largest currency in the world and growing. It could one day become the global reserve currency and be the first non-state currency to be used worldwide.
Over $ 10 trillion in value have been turned over the network. However, for some reason, there is still a debate about whether cryptocurrencies are money.
On the one hand, the word currency is in the name – and Satoshi Nakamoto wanted his invention to look like money. And according to the general public, they also see cryptocurrencies as „money“.
IMF survey: More than 75% believe that crypto is „money“
The official Twitter account of the International Monetary Fund has just published a survey in which followers were asked whether “digital currencies” are “really money?” Of almost 100,000 votes, around 80% of the polls were in favor of crypto as money.
The IMF is a global organization made up of „190 countries working to promote global monetary cooperation, ensure financial stability, facilitate international trade,“ and much more.
Recently, the central banks in the US got the green light to use digital currencies to transfer money. With every day that goes by, cryptocurrencies take another step towards „money“.
The debate remains, however – because although Bitcoin itself can easily be used as „money“ to spend, few who buy the cryptocurrency plan to use it that way.
But this is how superior forms of money manifest themselves in the beginning. The owners of the old form of money are beginning to trade it for what they perceive to be the better form of money – and hold onto it because they believe it is more valuable.
Eventually, if enough people do that, the currency itself becomes undeniably money. Could this be the path crypto is currently on?