In my previous article, I explored what Bitcoin Pizza Day teaches us about early adoption, risk-taking, and the psychology of holding versus spending. But today, let’s go deeper—and maybe stir up some controversy.
Bitcoin is often touted as "digital cash" or “peer-to-peer money,” yet fifteen years later, it's not used for everyday transactions. And frankly, it may never be.
The Medium-of-Exchange Myth
To be a real medium of exchange, money needs to be:
Widely accepted
Stable in value
Scalable with the economy
Bitcoin struggles with all three.
Sure, a few people buy coffee with Bitcoin. Some companies accept it—for now. But would you be willing to:
Get paid in Bitcoin for the next five years?
Pay your landlord, your employees, your grocery bill?
If the answer isn’t a confident yes, then Bitcoin isn’t fulfilling that role. And here’s why:
1. Fixed Supply in a Growing World
Bitcoin is capped at 21 million coins. That scarcity gives it strength as a store of value—like digital gold. But gold isn’t used to buy groceries, either.
As the world economy grows—with more people, more productivity, more consumption—money supply typically expands to match it. Central banks adjust interest rates and inject liquidity to keep systems running.
Bitcoin doesn’t do that. It can’t. There’s no central authority. And while that’s part of the ideological appeal, it also makes it structurally incapable of adapting to global economic shifts.
2. Volatility Destroys Spendability
Bitcoin’s value swings violently. One day it’s up 10%, the next it’s down 12%. That’s great for traders—not for spenders.
Volatility breeds regret and uncertainty:
"Why did I pay in BTC yesterday? It’s up 20% today."
"If I receive BTC today, will it drop before I can convert it?"
No one wants to spend money that might 10x. And no merchant wants to be paid in something that could crash.
3. The Bitcoin Paradox
Ironically, Bitcoin's greatest strength—its deflationary design—is also its fatal flaw as a currency.
People hoard BTC expecting future value increases.
That means low velocity—few transactions.
Which limits network utility.
Which, in turn, keeps adoption in check.
It’s a loop that reinforces BTC’s role as an asset, not a currency.
The Real Question
Would you be willing to hold Bitcoin for the next 10 years? Maybe.
But would you be willing to spend it consistently? Or pay a salary in it?
That’s a whole different level of commitment—and most people simply won’t take that risk.
---
Bitcoin is here to stay. But not as cash. Not as day-to-day money.
It’s a digital commodity, a hedge, a bold experiment in decentralized value.
But a global medium of exchange?
Probably never.
$BTC
