Monetary Properties Of Bitcoin - Bitcoin Magazine: Bitcoin News, Articles, Charts, and Guides

June 26, 2021

The Wall Street Analyst’s Intro to Bitcoin:

  1. The Dimensions of Money
  2. What Bitcoin Does
  3. How Bitcoin Works
  4. The Monetary Properties of Bitcoin

The Monetary Properties Of Bitcoin

Now we understand how Bitcoin works. Before we can compare its monetary properties to prior forms of money, we need to briefly cover the ecosystem which is being built on top of Bitcoin. Once understood, we’ll have the proper framework to assess its monetary properties and thus, its monetary value.

The Bitcoin Ecosystem

Bitcoin’s software leverages a decentralized network to make peer-to-peer transactions. This functionality allows it to act as a base monetary layer for a new financial system. Bitcoin can exist on its own, but requires an ecosystem of enabling products and services if it is to replace our current financial system. This ecosystem is necessary for further mainstream adoption because it impacts the ease with which Bitcoin can be used. Bitcoin cannot yet function as an alternative financial base layer to the United States dollar. The ecosystem around bitcoin needs to replicate the variety of financial services that support our current banking system.