Bitcoin's Evolution Into A Legitimate Form Of Money

The article considers how bitcoin had developed into a legitimate form of money by 2023, measured against the traditional functions of money as a medium of exchange, a unit of account and a store of value. It points to bitcoin’s decentralised network, its fixed supply of 21 million, a rise of more than 6,000% since 2016 despite volatility, growing transaction volumes and record hash rates, and the rising number of addresses holding small amounts.

It draws on figures including Nick Szabo, whose bit gold concept preceded bitcoin; Saifedean Ammous, who argues in The Bitcoin Standard that bitcoin’s predictable supply makes it sound money; Wences Casares, who sees it as a tool for financial inclusion; Preston Pysh, on its timechain; and Lyn Alden, on its network effect. The article argues that bitcoin’s value grows as more people and institutions adopt it, and that its public ledger makes it globally verifiable.