Bitcoin as Money? Review
Bitcoin as Money?
This website, on behalf of the Federal Reserve Bank of Boston, contains a full report named “Bitcoin as Money” by Stephanie Lo and J. Christina Wang detailing Bitcoins usage and implementation as a currency.
This report is in response to the incredible rise of both the price of Bitcoin and its public attention as well as scholarly interest. Contained in this policy brief is the discussion of Bitcoins features and how they have hurt its ability to perform the functions of a real currency. Some of the topics will include its unit of account, store of value, and using Bitcoin as a medium of exchange.
After that discussion you will find further reading regarding how various forms of intermediaries have come about and grown with Bitcoins adoption. This section will largely depend on theories of financial intermediation and will discuss further the implication for the future evolution of intermediaries serving Bitcoin and altcoin users.
Finally, the report will discuss a comparison between Bitcoin and other innovative fintech to facilitate payment services. With this will include a broad consideration of factors that will likely shape the future development of Bitcoin versus other alternative payment systems.
The writers of this piece predict that large payment processors will still dominate due to economies of scale, however Bitcoin will have a lasting legacy by spurring new and innovative payment technology.