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RE: LeoThread 2024-12-05 13:23

in LeoFinance7 days ago

Part 2/7:

Many discussions surrounding Bitcoin frame it as a cryptocurrency akin to others circulating in the market. However, this perspective has limitations. Bitcoin has struggled to fulfill the basic functions of a currency. It is neither a consistent unit of account nor a scalable means of payment. Furthermore, Bitcoin fails to meet the criteria of a stable store of value. The fluctuations in its price accentuate its speculative asset status, akin to meme stocks and SPACs.

The question of Bitcoin's practical application as a currency is further evidenced by examples such as El Salvador, which mandated Bitcoin's use as legal tender. This initiative resulted in less than 1% of all transactions occurring in Bitcoin, shedding light on its reluctance to fully operate as a currency.