Bitcoin in Comparison with Classic Money

29.12.2015

Knowledge offered by modern economy provides us with quite clear concept of money, its purpose, characteristics, origin, as well as offers thorough understanding of economical strategies of money flows in society. The problem is that even with common availability not everybody knows at least simple definitions of the term ‘money’.
We can call it modern ignorance, so if you read this article, you have a unique chance to learn more not only about typical forms of money, but also to admit a fact that Bitcoin is on top of epic money lineage.
So, let’s get down to definitions of ‘money’ and substitute the term for Bitcoin. The picture looks quite impressive.
Money should be scarce
First of all, money is an asset; when we deal with any asset, there are always people pretending to seize it. Thus, money that is not scarce (in deficit) is not money anymore.
While the name of Bitcoin and blockchain inventor is surrounded by mystery and legends; he succeeded to set unchangeable rules of monetary flow so that Bitcoin flow is fixed by the finite number, which is always more by one customer. In other words, system has its own ecosystem of automatic maintenance of shortage of funds. This is genius solution that might pretend for Nobel Prize for digital technologies given that Bitcoin is a cryptocurrency. Bitcoin will always remain a scarce asset.
Asset viability or life-span
This rule is applicable to modern money in its traditional format as a life-span of notes, coins or any other embodiment of money ever existed (exchange stones, singed bonds and checks, etc.). For example, gold is nonperishable product, so its value is always high, as well as value of other precious metals, but even they fade in comparison with Bitcoin. Blockchain system, where Bitcoin assets are kept, is controlled by thousands of computers. The cryptocurrency cannot be lost or get old.
It is digital! It doesn’t have such parameters as color, odor, taste, weight and others, you cannot touch it as well, but it’s obvious that it can be used in settlements and all the money stock is self-controlled. Life-span of Bitcoin came out of money definition format and reached endlessness.
Indivisible is not money
Economic institutions offer one more definition of ‘money’ – division. An obvious, logic and very correct rule. Money should be divided into smaller constituent parts. Bitcoin is divided in decimals endlessly depending on protocol changes. Currently, the smallest coin for Bitcoin is so-called “satoshi”, but new, smaller units may appear – this is undeniable advantage of Bitcoin in comparison with ordinary money. Bitcoin is endlessly divisible currency. 
Comfort and mobility
In the history of money there was no precedent for money to be as mobile as Bitcoin. Settlements became as easy as sending an e-mail. It is inappropriate to compare mobility of Bitcoin with a truck of cash, because transfers of large amounts are performed by several keystrokes on your laptop or any other gadget. Money is transferred to any other place worldwide instantly with no need in security guards and no commission fees. This is indeed a fantastic technology that mankind has never experienced before. As of today, Bitcoin is the most mobile payment instrument.
Money should be recognizable
All banknotes are provided with numbers and means of protection. This is the aspect of money awareness. As for Bitcoin, the network has a built-in tracking for every virtual coin by its individual number. Bitcoin complies with the rule, therefore, Bitcoin is money.
Programmability
There is one more modern and advanced parameter, which not all other money comply with, - programmability. Bitcoin can be added new characteristics any time, but whether this feature is applicable to dollar, euro or any other currency...