Money has to be either:
- Something of inherent and reliable value. (gold, silver, cigarettes, bullets)
- Unit of account backed by the authority
Bitcoin is neither.
Bitcoin is vessel on any given unit of exchange
Nah. Everything has value, either direct use value or exchange value or both. Exchange value, which you also could call money value, comes from the reservation demand that the traders set out. Whatever is money, is what the traders prefer to use.
The value comes from the minds of the individuals, different for everyone.
Most things has use value, so you buy it (demand it) because you want to use it. Doesn't make a difference if you consume it right away, and the value disappears, or it is a durable good that you consume over years. The point is that you aquire it for the value it gives you, or the inherent value. It makes no sense to hoard bicycles if you want to save for your daughters education.
When something is used in indirect exchange, its value increases as a consequence. Some things have both types of value, example gold, but it is impossible to exactly define the magnitude of the use value part compared to the exchange value part.
Fiat money has only exchange value, making it pure money, a nice invention. It is not the zero inherent (use value) that is its problem, rather it is the fact that someone controls the supply irresponsibly.
With bitcoin you have the advantage of pure money (no intrinsic value) and at the same time it is not centrally controlled, so nobody can steal value from the hoarders by creating more. It is nearly perfect, clean, pure money, with only some small drawbacks compared to some other money, that can easily be fixed using added services.
tl;dr that was a rerun of the value discussion, some new users may find it interesting.
