Short answer: No. But the long answer is really what matters.
What is money? According to Gemini AI, money is anything that functions in all of these four ways:
- Medium of exchange. Money is used to buy and sell goods and services. It's a portable intermediary that avoids the limitations of barter.
- Store of value. Money can be saved and used in the future to purchase something. It retains its purchasing powerful over time
- Unit of account. Money is a standard unit of measurement for the value of goods, services, and transactions. It's also a basis for quoting and bargaining prices.
- Standard of deferred payment. Money is used to set debts and defer payments.
Bitcoin is definitely not a store of value, since it is extremely volatile. It does perform the other three functions, but only in limited cases, and only on the false assumption that it actually IS a store of value. So, no, Bitcoin is not money.
So, then, why do people buy it? Because those people believe that it eventually will become money. And when it does, it will be the ultimate, universal, objective standard against which all other currencies will be evaluated.
Therefore, Bitcoin is currently an investment in a product that has the potential to, and eventually would, become money. And not just money, but THE money, a synonym of it.
Is that belief justified? That's the wrong question to ask. Here is why. Compare it with the USD. Why is USD money? Just like Bitcoin, it has no intrinsic value, like gold has. Just like Bitcoin, it is liquid, you can exchange it for other currencies. And yet the USD does function as a store of value. That's why it makes sense to deposit it and keep it over a longer period of time for later use. You have to account for inflation, but you have a pretty good idea of how many USDs you would have to exchange for a loaf of bread in ten years. But why? What is the foundation for this "pretty good idea"? Well, there isn't. People believe the USD stores value simply because the Federal Government promises it. Nothing else. The USD is just another government scheme, a tool of control. Initially, USD had the same credibility as the bank-notes issued by private banks, since they were all backed by physical gold stored in their vaults. Then it was imposed by the US Government as the only legal tender. Then they set a fixed, artificial, value for it in terms of gold. Then they confiscated gold. And then they discarded the gold standard altogether. Now, the Federal Reserve can manipulate it in any way they want. It's not even subject to Congress approval. The USD is a store of value ONLY because people believe in it. This is why the question to ask is not "Is it justified to believe in Bitcoin?" but "Should we believe in Bitcoin more than in the USD?". And the answer to that is an emphatic YES!
First, the qualities of Bitcoin: It is
de-centralized and not-inflatable. It cannot be manipulated. You would know with certainty that 1BTC saved (and invested) today is going to get you more loafs of bread in ten years than what you're getting now, since it costs much less to produce value than to produce BTC. Therefore BTC will be more than just a
store of value, it would virtually be a
maker of value. And second, the bleak future of the USD (and of all classic currencies everywhere). Wars are looming around the world. Ukraine and the Middle-East are only the ones currently occuring, but they are providing perfect distractions for China to invade Taiwan. Even North America is not safe, since Congress has recently deemed necessary to introduce the
No Invading Allies Act bill to prevent Trump from actually invading Canada. All these wars, as well as the preparations for defense, will need to be funded. The EU has just decided to
issue bonds worth almost $1T to increase their military spending. "The EU needs to regain competitiveness and economic growth" to pay for all this, they say. Yeah! Good luck! They'll be left with the only solution - to inflate. Good luck inflating Bitcoin!