Bitcoin achieves the unit of account (UoA) status for everyone globally while simultaneously becoming the most desirable asset to own. Which only encourages more people to continue using it as their store of value (Sov) and medium of exchange (MoE).
Bitcoin will eventually be used as a global reserve currency and that it has the potential to either replace government-issued fiat currencies entirely or be the base money used all over the world that governments issue their own currency on top of — in other words, we see a situation where all money will be backed by Bitcoin and that Bitcoin will also replace monetary metals including gold as a key store of value and all pricing and mental calculations will be undertaken in ‘Satoshis’ rather than native currencies.
The scope of this article is to analyse Bitcoin (BTC-USD) position in monetary economics and as a mean of fiat currency hedge. Despite critics arguing that Bitcoin’s value will eventually go to zero, I find that economic projections favour Bitcoin as a store of value as opposed to fiat currency. I run three scenarios to evaluate possible Bitcoin’s price in the short term. Following the analysis, the projections show a price range between $5000 and $57000.
[I]t appears to me to be just as certain that the functions of being a “measure of value” and a “store of value” must not be attributed to money as such, since these functions are of a merely accidental nature and are not an essential part of the concept of money.