Bitcoin Is Changing The Rules Of Money – Bitcoin USD (Cryptocurrency:BTC-USD)

Introduction

Many criticisms of Bitcoin (BTC-USD) (COIN) (OTCQX:GBTC) rely on the argument that Bitcoin does not fit the definition of a currency, a unit of account, or that it cannot be a store of value and a currency at the same time.

First, we will explain these arguments in detail. Then, we will explore why these claims fall short. We’ll also discuss some interesting and new properties that Bitcoin has that bring uncertainty into our existing models of money, exchange, and even accounting.

The Unit of Account Argument

What is a unit of account?

Unit by which value of a thing is accounted and compared. It is one of the primary functions of money. – Business Dictionary

Essentially, this means that accountants keep the books in terms of US dollars and we also price things in that same unit, hence unit of account. True, the dollar does inflate a bit each year, but the semi-steady clip is unlikely to catch anyone off guard (although government statistics on inflation tend to be…