CAN BITCOIN BECOME MONEY? ITS MONEY FUNCTIONS AND THE REGRESSION THEOREM

Stroukal, Dominik

CAN BITCOIN BECOME MONEY? ITS MONEY FUNCTIONS AND THE REGRESSION THEOREM

DOMINIK STROUKAL

Abstract:

Bitcoin as a payment system indisputably offers an advantage over the government currencies in transaction time and costs. On the other hand the moneyness of Bitcoin itself is questioned. This paper analyzes Bitcoin from the Austrian perspective and compares the qualities of Bitcoin with qualities of good money in order to find out whether Bitcoin could serve as money. The examined properties are portability, storability, divisibility, recognizability, homogeneity and scarcity. Moreover it examines the consistency of Bitcoin emergence as a medium of exchange with Mises’ regression theorem and identifies the non-monetary value of Bitcoin. The result of this theoretical analysis shows that Bitcoin’s properties can facilitate the functions of money.

Keywords:
Bitcoin; cryptocurrency; regression theory; money; money functions

DOI: 10.20472/BM.2018.6.1.004

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APA citation:
DOMINIK STROUKAL (2018). CAN BITCOIN BECOME MONEY? ITS MONEY FUNCTIONS AND THE REGRESSION THEOREM. International Journal of Business and Management, Vol. VI(1), pp. 36-53. , DOI: 10.20472/BM.2018.6.1.004