Bitcoin is money

Money can be one of two things.

It can be a tangible object: I can pay you by handing you a coin or a banknote which we both agree is money.

But if I send money from my bank account to yours, our banks don’t pass each other coins or banknotes or any other physical objects. So how does the money move?

Well, nothing really moves at all. Our banks simply make entries in their ledgers, and we accept these book entries as money. Most money is this second type: ledger money.

As we’ve already seen, Bitcoin is a ledger. And just like a bank’s books, Bitcoin is a ledger which people all around the world agree is money.

Bitcoin is money.