CNBC video says Bitcoin is store of value but not currency, big picture misses

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A recent video from CNBC.com covered current Bitcoin use cases in the United States, with a conversation discussing the merits of bitcoin as a currency. Unsurprisingly, many general public misunderstandings have come to light.

“People don’t really use bitcoin to buy everyday items, and part of the reason is that few retailers give them the option to spend it,” CNBC.com digital correspondent Mackenzie said. Sigalos in the video. “You have [some companies] which will allow you to use your crypto wallet directly on their website or in person, but that is the exception. “

The use of Bitcoin as a medium of exchange –– the role of money on which the dominant line of thought mainly focuses –– is very often debated. Most people argue that since the price of bitcoin in US dollars is quite volatile, it is not suitable for use in day to day transactions. Therefore, they mistakenly conclude that bitcoin is not money. However, money has more functions than just being a medium of exchange; it historically follows a path of monetization as its awareness and adoption increases worldwide.

“Historically speaking, a substance as widely regarded as gold appears to have served, first, as a valuable commodity for ornamental purposes; second, as stored wealth; third, as a medium of exchange; and, finally, as a measure of value, “wrote marginalist economist William Stanley Jevons.

Sigalos also said that “at the moment bitcoin is really only seen as a store of value asset.” Such a statement might be seen as bad news for some and is often enthusiastically repeated by the mainstream media, but shows how bitcoin is undergoing complete monetization as fledgling money.

Bitcoin is indeed peer-to-peer electronic money; it was created to solve the problem of double spending and bring money into the digital realm without the need for trusted intermediaries. However, it is still young, having been created only a little over a decade ago. If most people who know or have bitcoin already see it as a store of value, as Sigalos said, that’s great news. Bitcoin is currently emerging as a well-established store of value with many prominent investors choosing to gain BTC exposure –– after many years of being seen only as a collector’s item and gimmick.

If adoption continues to rise and is currently growing faster than internet adoption, Bitcoin will progress to the last two roles of money in its monetization path. As more and more people learn about, use, and accept bitcoin, it will become more established globally. Therefore, it will naturally become a medium of exchange and, later, a unit of account (a measure of value). We need to put Bitcoin’s history and the current stage of monetization into perspective. While the whole world doesn’t realize that BTC is the best money ever, Bitcoiners can profit from stacking more sats.

Nonetheless, bitcoin is already a powerful medium of exchange outside the US financial privilege bubble. In developing countries around the world, where economic policies are wreaking havoc on the purchasing power of citizens, BTC offers an option to peacefully protest and withdraw from a failed system. In Palestine, for example, bitcoin could become a currency of freedom. In addition, Nigeria, Sudan and Ethiopia are concrete examples of places where bitcoin brings many benefits to citizens. And in El Salvador, bitcoin has already been considered legal tender, obtaining the status of official currency there.

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