Bitcoin doesnt have good monetary properties? Go back to your textbook:
- Medium of exchange: bad. Caps out at a few transactions per second, transaction cost go up massively when actually used.
- Unit of account: Terrible. Because of price volatility you denominate BTC in terms of USD - something priced in BTC has a different price depending on the minute you look at it
- Store of value: Hilariously terrible. Storing value has to do with *low price volatility* something which Bitcoin does not have. The average price might be up over time, but this is *speculation*, not storing value! If you store value you want as close to what you put in as possible, not more (or less).
People claiming Bitcoin is a "store of value" don't understand what the word "storing" means, nor the textbook definition.
So condescending. That's because Bitcoin is not widely used as money yet. Those things don't all happen at the same time, they happen sequentially.
- collectable -> It's cool, I want some.
- store of value -> it holds value better than any other money. (Bitcoin is here)
- medium of exchange -> People request it in exchange for goods and services because it holds its value over time.
- unit of account -> People denominate prices in it because it's a widely used medium of exchange.
Edit: My initial point was Bitcoin has properties that make it suitable for use as money: divisible, portable, easy to verify, doesn't degrade over time, etc.
- Medium of exchange: bad. Caps out at a few transactions per second, transaction cost go up massively when actually used.
- Unit of account: Terrible. Because of price volatility you denominate BTC in terms of USD - something priced in BTC has a different price depending on the minute you look at it
- Store of value: Hilariously terrible. Storing value has to do with *low price volatility* something which Bitcoin does not have. The average price might be up over time, but this is *speculation*, not storing value! If you store value you want as close to what you put in as possible, not more (or less).
People claiming Bitcoin is a "store of value" don't understand what the word "storing" means, nor the textbook definition.