Bitcoin's Future as a Store of Value Depends on its Acceptance as a Medium of Exchange

• Bitcoin is both a medium of exchange (MoE) and a store of value (SoV).
• SoVs and MoEs are conceptually inseparable and have always coexisted throughout history.
• Bitcoin is used for trillions of dollars worth of transactions annually.
• Bitcoin is held on exchanges to facilitate trading, proving its functionality as a MoE.
• Retailers like Balenciaga and AMC Theatres accept bitcoin as a MoE.
• Bitcoin's volatility can be mitigated as more people use it as a MoE.

Summary :
Bitcoin is both a medium of exchange (MoE) and a store of value (SoV). The false dichotomy between the two is debunked in this article, which argues that bitcoin's future as a SoV depends on its acceptance as a MoE. The article provides historical examples, such as bronze ingots, gold coins, and wampum, to demonstrate how assets have functioned as both SoVs and MoEs throughout history. It also highlights how bitcoin is being used as a MoE in various ways, including by retailers like Atoms and major brands like Balenciaga and Tag Heuer. The article acknowledges that bitcoin's volatility and regulatory treatment are challenges to its use as a MoE but suggests that increased adoption and improved user experience can address these issues. Ultimately, the article emphasizes that bitcoin's value depends on how it is collectively used and that its flexibility allows for diverse needs and perspectives.

Sources :

- Bitcoinmagazine