How well does Bitcoin function as a currency?

[teklang01]

Bitcoin functions as a currency because it can be used as payments for items or services you purchased from a merchants who accepts bitcoins. Bitcoin gain popularity now and not long, it will be widespread and perhaps, in the near future, all merchants will acknowledge bitcoin as payments and it will be treated like the local currency.

[primarydumz]

Successful currencies meet three criteria:

(1) they are in widespread use as medium of exchange
(2) they serve as unit of account
(3) they are a stable store of value.

Most sovereign currencies fully meet all three criteria.

What about Bitcoin?

Where did you get this criteria?

Bitcoin has potential to meet all three. Just the last one Bitcoin doesn't meet, but as it becomes less and less inflationary (as block rewards halve), bitcoin's price will be more stable.

Actually that’s is what my teacher teach us in my economic subject, I’m just confused because now many people, companies, institutions, ect., using bitcoin as a currency, that’s why I want to know idea if the bitcoin fit that criteria above mentioned.

[Dudeperfect]

Let's be honest, Bitcoin is not yet ideal for our day to day life in the case of microtransactions. Many things of daily need are available at the cost of Bitcoin transaction fee so why would use Bitcoin if technically he can get it for free? Further, we need to work on awareness among merchants and customers about the benefits of using crypto to inculcate the habit of using cryptocurrencies as a payment system. As far as the price volatility is concerned, it will remain there for few years as we are still in the development phase.

[Kittygalore]

Successful currencies meet three criteria:

(1) they are in widespread use as medium of exchange
(2) they serve as unit of account
(3) they are a stable store of value.

Most sovereign currencies fully meet all three criteria.

What about Bitcoin?

Well first of all bitcoin isn't accepted all over the world and also most of the time they don't accept bitcoin as a method of payment. The use of bitcoin is private sectors of shops. Bitcoin has a really good rate but I will disagree of your stabled price there. Because bitcoin is never stable in the first place it is always fluctuating and inflating as time goes by and you cannot remove this fact about bitcoin and this is what makes it risky as a currency.

[Ris88]

If seen, it may still be constrained by so many transactions, which slows down to better delivery of some that I know that, the more bitcoin days have shown to the stability that many people may have felt this year.

[olubams]

I can say as at today, the rate at which bitcoin function as a currency is sill very much low compared to functioning as an investment. The currency part is too minute to be reckoned with as that is hurting the market from growing. Retailers wont make sales because of that. Several online shops have opened to sell clothes, groceries, hoods, items accepting bitcoin as a means of payment but they end up closing because I wont buy something of say .01btc and by next week realized I could have paid 0.008btc for that same commodity.

[quovadiz]

Let's be honest, Bitcoin is not yet ideal for our day to day life in the case of microtransactions. Many things of daily need are available at the cost of Bitcoin transaction fee so why would use Bitcoin if technically he can get it for free? Further, we need to work on awareness among merchants and customers about the benefits of using crypto to inculcate the habit of using cryptocurrencies as a payment system. As far as the price volatility is concerned, it will remain there for few years as we are still in the development phase.

Yes that is right, but in some modern countries,like Japan and Brazil people have the facilities to use bitcoin for different purposes, they can buy a lot of stuff using bitcoin through online shopping as well as can also use bitcoin in their local shops where the shopkeepers are accepting bitcoin.

[thorvald]

Obviously bitcoin in its current state does not quite meet these requirements to be a successful payment vehicle, but it's well on its way to getting there. Have some patience and hodl on

[Crislyn4116]

If the bitcoin it will make a currency it is very helpful to the people that uses bitcoin the payment system is faster and low fee than the tax. By simply  campute the code or wallet address of the store you can pay your bills and your money is safe from the thief.

[Rozita]

these three standards are out of date . we need new standards , now . first , currency cannot be manipulated by any institution . second , it can be freely circulated throughout the world . third , it is decentralized . bitcoin meets these conditions .

You are right about these three criteria. These are what blockchain technology has introduced and should be implemented in new currencies. But I think the criteria that OP mentioned, must be met too. They are also needed.

[luckchuck]

These criterias might be outdated. who knows maybe in 10 years there will be some changes to them?

[bitbunnny]

Trends and criteria are changing and evolving all the time. From my point of view Bitcoin is already functioning well as a currency although it doesn't fit to all standards. But it's flexible enough to adapt to necessary changes and requirements. Also regulations might further help with that.

[reddev81]

Bitcoin doesn't function that well as a real currency for real world purchases at the moment...it's just too volatile. You pay for a cup of coffee today and in a few month's time you paid $500 for that cup of coffee. Bitcoin will need to stabilize in order for it to become a currency for everyday purchases. It's better to use fiat till that day comes, otherwise you will regret spending your bitcoins on everyday stuff.

[Vertex_ICO]

Right now? Maybe not, but who knows what a functioning currency will look like in 10 years time.

[alfs75]

Successful currencies meet three criteria:

(1) they are in widespread use as medium of exchange
(2) they serve as unit of account
(3) they are a stable store of value.

Most sovereign currencies fully meet all three criteria.

What about Bitcoin?

Bitcoin is a successful currency and all of us  now would know,otherwise as what you stated in your statement,bitcoin would meet or pass this three criteria,definetly bitcoin now is used widespread globally and one of the best currency,that mostly used and aim of every people especially you are have great a knowledge about the value of bitcoin in this new era.

[ilya_gr]

Bitcoin is the worst example of calssic currency at the moment Huge volatility, small liquidity in real-world usual market, but it`s quite good way to save money in long perspective, like traditional assets

[Kim Domingo]

It will take some more time before btc is recognized a real currency. As of now, it's just a store of value, which is totally fine. I don't mind btc being recognized as only a store or value..just look at gold.

Given the certain evidences above, you can believe that Bit oin can be considered as a currency which means by the Dictionary to be the circulation as a medium of exchange which means no matter how big or small of Bitcoin that you have and stores there would be an exact amount with an exchange to your local monetary value that you can spend in any legal way that you wanted. Bitcoin is not a fiat nor physical money but it is a currency which considered as crypto that help us to be profitable in an easier way that we could.

[BartS]

in my opinion, bitcoin is not a currency, but merely an asset, more or less like a stock.
even we know the price of bitcoin can not be stable, since 2009 until now the fluctuation is quite dangerous

Bitcoin is a currency, satoshi created bitcoin as a currency and if you look at the characteristics of bitcoin, bitcoin fits all the characteristics of a currency, there are many reasons of why bitcoin is not being used as a currency, one of the most important is that is incredibly valuable and people do not want to use it because they feel that if they do it they will lose on the potential profits that they could get if they keep holding their bitcoin, and the recent bull run that we experimented at the end of the previous year proves them right.

[Grechkatx]

Successful currencies meet three criteria:

(1) they are in widespread use as medium of exchange
(2) they serve as unit of account
(3) they are a stable store of value.

Most sovereign currencies fully meet all three criteria.

What about Bitcoin?

Well, well enough to call profitable currency, it is not very well placed to the world, but I think soon she will be more popularan and interesting to all people, including all of the state.

[Ankhesenamun]

so far, bitcoin can not be called a currency, because it is not recognized by the governments of many countries. Yes, now there is an active discussion about the recognition of its currency, but no one knows how long it will last.