Bitcoin I

You might have heard of Bitcoin, one of the most widely known cryptocurrencies.

But how well does it work as money? To answer this, evaluate Bitcoin using the functions of money.

Money performs three key functions, which are it acts as a medium of exchange, a store of value, and a unit of account.

Now, imagine Sarah goes to purchase a car. She offers to pay in Bitcoin, and the seller accepts it.

As Sarah could use Bitcoin to buy the car, it works as a medium of exchange.

So far, it seems that Bitcoin performs the function of a medium of exchange.

Now consider Sarah making an everyday purchase.

She walks into a café to buy a cup of coffee.

The café does not accept Bitcoin because many businesses rely on conventional payment methods.

To sum up, Bitcoin may serve the function of a medium of exchange when buyers and sellers agree to use it, but its limited acceptance makes it less practical for many everyday purchases.