ABSTRACT
This chapter aims to understand the economic nature of bitcoin. Using the most up-to-date economic literature, it clarifies whether bitcoin should be considered as money or as an asset or gold. The chapter explores whether bitcoin can be considered money. It investigates the possibility that bitcoin is the “new gold” and a speculative asset, respectively. The chapter examines portraying some policy considerations and possible lines for future research. Money is a medium of exchange because it is widely accepted as payment in exchange for goods and services. The role of money as an intermediary instrument allows payments to be more flexible than barter exchange. One economic property of money is acting as a store of value. A currency must be able to sustain a stable level of worth for a prolonged period of time. A unit of account assigns a value to goods and services using a common specific currency, allowing the price of goods to be compared easily.
