Bitcoin was created to be the first ever peer-to-peer electronic cash system, and in its wake, an entire industry of digital assets has since been created. Despite the cryptocurrency’s longevity and staying power, there’s still debate amongst policy makers, regulators, and even investors, if the asset class should be defined as “money.”
A recent survey conducted by the International Monetary Fund has respondents overwhelmingly saying “yes” that Bitcoin and other altcoins are indeed money, and should be viewed as such.
Bitcoin And Maturing Into Hard Money
Bitcoin price is trading at under $40,000, a few thousand from its recent high. And while a drop of that magnitude in the past would bring forth obituaries about Bitcoin, today, its viewed as an opportunity to get in slightly cheaper.
Investors and institutions are voting with their capital that the cryptocurrency will outperform the dollar and help to offset the coming bout of hyperinflation. Bitcoin is up more than 500% against the dollar since the pandemic struck, and while the short-term trend might be taking a breather, the long-term trajectory has always been up.
BTC is now the 16th world’s largest currency and climbing. It could some day become the global reserve currency, and be the first non-sovereign currency that’s used worldwide. There’s been over $10 trillion in value transacted across its network. Yet for some reason, there’s still debate over if cryptocurrencies are money.
The word currency is in the name, and Satoshi Nakamoto had every intention of his invention acting like money. And according to the general public, they also view cryptocurrencies as “money.”
IMF Twitter Survey: More Than 75% Believe Crypto Is “Money”
The International Monetary Fund’s official Twitter account recently shared a survey asking followers if “digital currencies” are “really money?” Out of nearly 100,000 votes, the poll is currently leading around 80% in favor of crypto as money.
The IMF is a global organization consisting of “190 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade,” and more.
Recently, central banks in the US received the green light to begin using digital currencies to transfer money. Each passing day, cryptocurrencies take another step toward becoming “money.”
The debate exists, however, because although Bitcoin itself can easily be used as “money” to spend, few who buy the cryptocurrency plan on using it that way. But this is how superior forms of money first emerge. Owners of the old form of money begin to exchange it for what they perceive as the better form of money, and hold onto it because they believe it is more valuable.
Eventually, when enough people do this, the currency itself becomes undeniably money on its own. Could this be the path crypto is currently on?
Featured image from Deposit Photos, Charts from TradingView.com
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