BITCOINS: MONEY OF THE FUTURE?
Keywords:
Bitcoin, Cryptocurrency, Money of The FutureAbstract
Cryptocurrencies, one of which is Bitcoin, are becoming widely popular among investors reflecting the new generation and hoping for higher returns than investing in traditional investments. One of the factors attracting people to invest or accumulate Bitcoin is because they believe that Bitcoin is money that could even be the money of the future. This article seeks to investigate whether Bitcoin is money and can act as a substitute for fiat money globally.
This article shows that the volatility of Bitcoin prices calculated as a percentage CV of moving standard deviation is quite high compared to fiat money like the US Dollar and Thai Baht around 8.24 to 11.32 times from 2014 to 2023. This attribute hinders Bitcoin from performing the function of money as a medium of exchange. Such high volatility of Bitcoin also hinders Bitcoin's ability to function as a store of value. As for a unit of account function of money, the small unit of bitcoin that is a million times smaller than its base unit compared to regular fiat money makes it inconvenient to use bitcoin in real-life trading activities and for accounting.
In conclusion, this points out that Bitcoin could not meet the three money functions qualification, Bitcoins, therefore could not perform well as money for now even for the future.
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