A truth guide to Bitcoin status quo.
Money makes the world go round, or so they say. But what even is money? More importantly, does Bitcoin—the infamous digital gold—check all the boxes to be a legitimate currency? Before we get to that, let’s take a step back and figure out what gives money its shine in the first place.
The Fundamentals of Currency: More Than Just Paper and Metal
Currency, at its core, is a medium of exchange. It allows us to sidestep the inefficiencies of barter, where a coconut vendor must hunt down a shoemaker who’s craving coconuts. Instead of this logistical nightmare, money streamlines trade, enabling transactions between complete strangers.
For something to qualify as a currency, it must exhibit three essential characteristics:
- Medium of Exchange – It should be widely accepted in trade for goods and services.
- Store of Value – It must retain its worth over time, ensuring your purchasing power doesn’t vanish overnight.
- Unit of Account – It should provide a standardized way to measure the value of goods and services.
Additionally, a good currency should be durable, portable, divisible, and scarce. Gold and fiat currencies like the US dollar or Indian rupee have historically checked these boxes. But does Bitcoin?
Bitcoin’s Claim to Currency Status
Bitcoin emerged in 2009, envisioned as a decentralized alternative to traditional money. It’s digital, scarce, and operates on a transparent, permissionless ledger. But does it fit the currency mould? Let’s examine.
1. Medium of Exchange: Are People Actually Using It?
Bitcoin’s adoption as a payment method has seen its ups and downs. In early 2021, Tesla invested $1.5 billion in Bitcoin and briefly accepted it as payment for vehicles. However, due to environmental concerns, the company suspended this option shortly after. As of early 2025, Tesla has not resumed accepting Bitcoin payments, despite previous indications that they might reconsider once Bitcoin mining becomes more sustainable.
On the governmental front, El Salvador made headlines by making Bitcoin a legal tender in 2021. In the United States, the stance on Bitcoin has evolved with political changes. The Trump administration, inaugurated in January 2025, has shown a more crypto-friendly approach. President Trump issued an executive order to promote U.S. leadership in digital assets and financial technology, signalling a potential shift towards broader acceptance.
Despite these developments, Bitcoin’s notorious volatility remains a significant barrier. Imagine buying a coffee for 0.0002 BTC today, only to find that tomorrow, the same amount is worth double. Merchants and consumers alike struggle with Bitcoin’s wild price swings, making it unreliable for daily transactions.
Verdict: Not quite there yet.
2. Store of Value: Digital Gold or a Volatile Gamble?
Bitcoin’s fixed supply of 21 million coins makes it resistant to inflation—a sharp contrast to fiat currencies that central banks print at will. Over the long term, Bitcoin has appreciated significantly, outperforming traditional assets like gold and stocks. However, its dramatic price fluctuations raise concerns. A store of value should offer stability, not heart-palpitating volatility.
Gold has thousands of years of credibility, whereas Bitcoin, despite its potential, remains a high-risk asset.
Verdict: On its way, but needs stability.
3. Unit of Account: Can We Price Things in Bitcoin?
A functional currency should provide a stable measurement of value. Right now, we price everything in fiat, whether it’s a house, a laptop, or a burger. Bitcoin prices fluctuate too drastically to be a reliable measuring stick. Even Bitcoin believers end up mentally converting prices back to dollars, euros, or rupees.
Verdict: Not a viable unit of account—yet.
Currency Later – Movement First
For Bitcoin to truly evolve into a currency, it first has to become an asset that can move seamlessly across financial and digital ecosystems. Currently, Bitcoin transactions on the base layer are slow and can be costly, making them impractical for frequent use. This is where infrastructure layers come into play.
Several projects are working to enhance Bitcoin’s mobility. In fact, as we speak, some 70+ chad projects are at work.
Among these, Persistence One is pioneering efforts to enhance Bitcoin’s interoperability.
Utilizing advanced technology like Cross-chain Intents, Persistence One aims to revolutionize user experience in decentralized finance (DeFi) by removing barriers to the Bitcoin movement.
Their solution enables direct cross-chain BTC swaps without relying on traditional bridging techniques, reducing complexity and minimizing security risks.
By integrating such technologies, Bitcoin can achieve fluid mobility across different financial layers, paving the way for its eventual acceptance as a mainstream currency.
Is Bitcoin the Future of Money?
Bitcoin might not be a perfect currency today, but it is pioneering a new financial paradigm. Here’s where it could go:
- Regulatory Support: The current U.S. administration under President Trump has shown a favorable stance towards cryptocurrencies, with initiatives aimed at promoting digital assets and financial technology.
- Technological Advancements: Projects like Persistence One are actively working to improve Bitcoin’s interoperability and mobility, addressing current limitations in transaction speed and cost.
- Market Maturation: As infrastructure improves and regulatory clarity emerges, Bitcoin’s volatility may decrease, enhancing its appeal as a stable store of value.
For now, Bitcoin is an asset more than a currency—a speculative investment that operates outside traditional banking. But give it some time, and who knows? We might just be pricing our morning lattes in satoshis.
About Persistence One
Persistence One is building the BTCFi Liquidity Hub, enabling fast, near zero-slippage swaps for XPRT, BTC-variants, and BTCfi tokens on Persistence DEX.
BTCFi’s rapid growth has created multiple BTC-related assets, making fragmentation a big challenge. Persistence One will provide a single liquidity hub, simplifying value transfer across the Bitcoin ecosystem.
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