Recently, cryptocurrencies and bitcoin have become the main topics in the financiali ndustry. A cryptocurrency is a digital or virtual currency that uses cryptography for security. They are a type of digital currency that allows people to make payments directly to each other through an online system. Cryptocurrencies have no legislated or intrinsic value; they are simply worth what people are willing to pay for them in the market. This is in contrast to national currencies, which get part of their value from being legislated as legal tender. Thenceforth here is our problematic : «Is Cryptocurrency Money ? »
In a historical retrospective, markets in general and financial markets in particular, have experienced a huge development. In this regard the instruments used as exchange instruments have also experienced change and have evolved in accordance to the markets needs aiming to make trade transactions as easy as possible. Those instruments used to intermediate the exchange of goods are known as money.
Most of the economists define money as something that serves as a medium of exchange, a unit of accounting, and a store of value. Money is a medium of exchange in the sense that we all agree to accept it in making transactions. Merchants agree to accept money in exchange for their goods; employees agree to accept money in exchange for their labor. As a unit of accounting, money provides a simple device for identifying and communicating value.
Money serves as a store of value in that it allows us to store the rewards of our labor or business in a convenient tool. In other words, money lets us store the value of a long, hard week of work in a tidy little stack of cash. Without money, how would we set aside the compensation we receive for later use? From the era of barter to commodity money, metal and coins, to gold and silver, continuing by modern monetary systems and checks and ending with the latest global currency developments, such as introduction of cryptocurrencies known as bitcoin and ethereum and alike, have passed centuries.
In conclusion, each type of the money has played it indispensable role in transaction activities for the respective time period. However, as the human society in general and markets in particular evolved, there was a need for more sophisticated goods exchange instruments. In this regard the introduction of cryptocurrencies has revolutionized the international payment system in a scale that just few years ago were unimaginable. Therefore according to the experts of ‘’Reserve Bank of Australia’’ Yes : Cryptocurrency is Money.
Please according to you, "Is Cryptocurrency Money ?"
references
Reserve Bank of Australia : Digital Currencies (pdf)
CRYPTOCURRENCIES – ADVANTAGES AND DISADVANTAGES ( Flamur Bunjaku, Olivera Gjorgieva-Trajkovska, Emilija MitevaKacarski)
