Bitcoin was created as the first peer-to-peer electronic cash system, and as a result, an entire industry of digital assets has emerged since then.
Despite the longevity and staying power of cryptocurrency, there is still debate among policymakers, regulators and even investors as to whether the asset class should be defined as „money.“
A recent survey conducted by the International Monetary Fund found that respondents overwhelmingly say „yes“ that Bitcoin and other altcoins are indeed money and should be considered as such.
Bitcoin and the move to hard money
The Bitcoin price is trading at under $40,000, a few thousand off its recent high. And while a drop of this magnitude would have generated obituaries about Bitcoin in the past, today it is seen as an opportunity to buy Bitcoin on the cheap.
Investors and institutions are voting with their capital that the cryptocurrency will outperform the dollar and help offset the coming bout of hyperinflation. Bitcoin has risen more than 500% against the dollar since the outbreak of the pandemic, and while the short-term trend may be taking a breather, the long-term trajectory is always up.
BTC is now the 16th largest currency in the world and rising. It could one day become the global reserve currency and the first non-government currency to be used worldwide.
Over $10 trillion in value has already been transacted through the network. Yet 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 intended for his invention to act like money. And according to the general public, they see cryptocurrencies as „money“ too.
At what price will people eventually consider Bitcoin as money?
IMF survey: more than 75% believe crypto is „money“
The official Twitter account of the International Monetary Fund has just published a poll asking followers if „digital currencies“ are „really money?“ Out of nearly 100,000 votes, the poll leads with about 80% 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 more.
Are digital currencies really money? #poll
– IMF (@IMFNews) January 14, 2021
Recently, central banks in the U.S. were given the green light to use digital currencies to transfer money. With each passing day, cryptocurrencies take another step toward becoming „money.“
The debate remains, however – because while Bitcoin itself can easily be used as „money“ to spend, few who buy the cryptocurrency plan to use it that way.
But that’s how superior forms of money manifest themselves to begin with. Owners of the old form of money begin to exchange it for what they perceive to be the superior form of money – and hold on to it because they believe it is more valuable.
Eventually, when enough people do that, the currency itself becomes indisputably money. Could this be the path crypto is currently on?