Bitcoin are not by nature money, but money consists by its nature of bitcoin？

[The Ghoul]

Marx mentioned in "A Contribution to the Critique of Political Economy"

Gold and silver are not by nature money, but money consists by its nature of gold and silver.

1. "Gold and silver are not by nature money" means that gold and silver are not inherently currency. Because gold and silver first appeared in the market as a general commodity, only when the commodity exchange developed to a certain historical stage, a fixed commodity of equivalent value was needed as a medium of exchange, called general equivalent, when the general equivalent was concentrated on gold and silver.  When gold and silver are fixedly used as general equivalents, it is currency. Because gold and silver do not become currency as soon as they come to the world.

2. "money consists by its nature of gold and silver", which means that money should be born of gold and silver, or that gold and silver are born with the excellent characteristics of being currency, which is determined by the natural properties of gold and silver.

So can we deduce the process of Bitcoin becoming a general equivalent from the process of gold and silver becoming a general equivalent?

1.gold was very valuable in ancient times.

The ancient smelting technology is relatively poor, and it is impossible to make copper, iron and other metals into exquisite utensils. You can only choose metals with a relatively low melting point and corrosion resistance as smelting materials. Since silver will become black after air oxidation, it is desirable to preserve the utensils for a long time. Must choose gold as the material. Since the output of ancient gold and silver was very low, the value of gold and silver was guaranteed to be high.

2.Gold and silver, especially gold, were not suitable as a standard currency in ancient times. As a currency, precious metals have the following disadvantages:

• The output is too small to support social and economic development

Almost all the large gold and silver mines discovered by humans are in Africa and America, not within the scope of the ancient civilized world.

• The value is too high to be used in daily transactions, and the loss of segmentation is too large

The gold cakes of the Han Dynasty,China, weighed 250 grams each and were valued at 13,000 dollar, which were not used in most transactions. However, if you divide a large piece of gold and silver, there will be loss in the process of dividing and recasting.

• The quality is mixed, ordinary people can hardly identify

Not to mention the ancients, even the current experts and scholars can hardly judge the specific content of gold and silver in gold and silverware without the help of professional instruments.


These three difficulties have become important factors preventing the large-scale use of gold and silver as currency in ancient societies. In ancient, cattle, salt, and tobacco were generally used as trading intermediaries.

When a large number of gold and silver mines were discovered later, gold and silver were generally used as currency. Later, the gold standard as we know it originated in the United Kingdom. Due to the discovery of a series of large gold mines in Africa and America, the price of gold began to fall. This currency system was first proposed by Newton and fixed the price of gold per ounce at 3 pounds, 17 shillings and 10.5 pence.

In 1797, the United Kingdom announced the coinage regulations, issued gold coins and stipulated the gold content.
In 1816, Britain passed the "Gold Standard System Act" and began to issue paper money with gold as collateral, and the British gold standard was formally established. This situation continued until the World War I.

The fundamental reason for the establishment of the gold standard is not the rarity of gold, but the skyrocketing production of gold, which happened to be controlled by the world's most powerful Britain at that time;If Spain is the world's largest country, I guess it will implement the silver standard.

According to the formation trajectory of the above gold standard.Can we deduce what it takes for Bitcoin to become a currency？
1. Segmentation, this does not need to be resolved for now. Bitcoin can be split to 8 decimal places
2. The total amount is small, the same reason as above. The reason why Satoshi Nakamoto set the total amount of Bitcoin at 21 million seems to be based on the global economic aggregate at that time
3. No major economy promotes Bitcoin. This economy needs to hold a lot of Bitcoin. And it has a lot of voice in the world. Similar to Britain at that time
4. To use Bitcoin, you need to learn some knowledge, while gold and silver don’t need to learn complex knowledge.
5.Does Bitcoin have its intrinsic value? Except for the energy and equipment required for mining to give it a certain value, there is no value that ordinary people understand. Such as: a vase made of gold can be stored for a long time, so gold is very valuable.

opinion source:https://www.gold.org/cn/page/9372

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[Charles-Tim]

Bitcoin is a digital currency because it can be spent P2P
Bitcoin is money because it has intrinsic value
Bitcoin is also an asset, an appropriative one because it is deflationary and do reach all-time-high
Bitcoin blended to be all

4. To use Bitcoin, you need to learn some knowledge, while gold and silver don’t need to learn complex knowledge.

You are right, but we should not exaggerate on this, to make use of Bitcoin is not that hard if someone is ready to make use of it. But the most important part is to learn ways to avoid scammers.

[The Ghoul]

Bitcoin is a digital currency because it can be spent P2P

This is the mission of Bitcoin, but to be honest, it’s better to call it digital thing. It is not a general equivalent

Bitcoin is money because it has intrinsic value

Intrinsic Value (Intrinsic Value) is also known as: Non Use Value (NUV)

Intrinsic value is also called non-use value, which is the value that is inherent in the thing itself and does not exist or change due to other related things outside of it. Existence value (EV) is the most important form of non-use value. Existence value is obtained from the satisfaction of only knowing that the asset exists, although there is no intention to use it.

1.The intrinsic value of an enterprise is the present value of future cash flows. The basic variable that determines the intrinsic value of an enterprise is not the past book asset value and current book surplus, but the size and speed of the company's future free cash flow. The ability of an enterprise to obtain cash is the basis of value evaluation and the main basis and core of financial risk evaluation.

2.The intrinsic value of stocks refers to the present value of future cash inflows from stocks. It is the true value of stocks, also called theoretical value. The future cash inflow of stocks includes two parts, one is the expected dividend, and the other is the income from the sale. The calculation methods of the intrinsic value of stocks include discounted cash flow and price-earnings ratio valuation. However, the actual trading of stocks may not necessarily reflect their own intrinsic value, and it is also affected by factors such as market sentiment.

3.The intrinsic value of a warrant refers to the difference between the price of the relevant asset and the exercise price, that is, the profit from the exercise of the warrant. It is equal to the positive difference between the strike price and the current price of the relevant asset after considering the conversion ratio. The intrinsic value of each unit of the warrant = (related asset price-strike price) / conversion ratio The intrinsic value of each unit of put warrant = (strike price-relevant asset price) / conversion ratio is impossible due to the inherent value of the warrant It is a negative number. If the calculated value is negative, it will be replaced by 0.

Maybe the definition of finance is a little bit different from what we understand. I need to study the intrinsic value you mentioned.

There seems to be no necessary connection between the two. The current currency has no intrinsic value, but serves as a general equivalent.

Bitcoin is also an asset, an appropriative one because it is deflationary and do reach all-time-high

It is indeed a good asset.

4. To use Bitcoin, you need to learn some knowledge, while gold and silver don’t need to learn complex knowledge.

You are right, but we should not exaggerate on this, to make use of Bitcoin is not that hard if someone is ready to make use of it. But the most important part is to learn ways to avoid scammers.

Yes, it is not difficult if you want to learn Bitcoin. Just like people use online shopping, you don’t need to learn the basics of the Internet, you just need to use it.

[Rainbow-queen]

5.Does Bitcoin have its intrinsic value? Except for the energy and equipment required for mining to give it a certain value, there is no value that ordinary people understand. Such as: a vase made of gold can be stored for a long time, so gold is very valuable.

If you want to discuss the intrinsic value of Bitcoin, check out BlackHatCoiner’s post，https://bitcointalk.org/index.php?topic=5354190.0.

Credit currency is supported by credit, not gold. The gold standard was shattered after the Bretton Woods system. At present, the mainstream currency in circulation in the world is not backed by gold.

[mrongoz_imut]

Bitcoin is an electronic money created in 2009 by Satoshi Nakamoto. ... Unlike currencies in general, bitcoin does not depend on trusting the main issuer. bitcoin can be used for anything, because the value of bitcoin is so fantastic, in the end most bitcoins are used as assets to invest, because if we are patient we will definitely profit what we get can be 2 times the price we buy,

[dkbit98]

Marx mentioned in "A Contribution to the Critique of Political Economy"

Karl Marx ruined so many lives with his stupid communist ideology that he should not be referenced by any means with anything related to money or bitcoin.

gold was very valuable in ancient times.

Gold is still valuable, has multiple use cases, and it's value is more or less the same unrelated with fiat currency experiment.
I once read somewhere that you could buy a good suit with same amount of gold now and during history in different periods, so it's less volatile.

The fundamental reason for the establishment of the gold standard is not the rarity of gold, but the skyrocketing production of gold, which happened to be controlled by the world's most powerful Britain at that time;If Spain is the world's largest country, I guess it will implement the silver standard.

I don't believe this to be true because there are a lot more silver on earth than gold, silver is more affordable and you can find it everywhere from kitchen, jewelry, to coins.

No major economy promotes Bitcoin. This economy needs to hold a lot of Bitcoin. And it has a lot of voice in the world. Similar to Britain at that time

Most governments are holding some Bitcoin, and Venezuela even has Bitcoin as legal tender, but it's wrong to say that ''economy'' needs to hold Bitcoin.

To use Bitcoin, you need to learn some knowledge, while gold and silver don’t need to learn complex knowledge.

Is that so? Can you tell me yourself if some shiny yellow metal is original or fake gold without learning some complex knowledge and having some complex instruments?
- No you can't, and anyone can easily sell you some fake gold.

[ranochigo]

I wouldn't hinge on any major economy thinking of accepting Bitcoin as a currency, fiat is better for their agenda and it is easier for them to regulate.

The main crux of the issue lies with the acceptance of it. If people were to start accepting Bitcoin as a currency, then there is no problem for it to be established as a currency. The derived value of gold also comes from the rarity and the costs of mining, which can also be compared to Bitcoin, where there is an expected amount of work being done to mine those coins.