CNBC Video Says Bitcoin Is Store Of Value But Not Currency, Misses The Big Picture

A recent video dealt with the current use cases for Bitcoin in the U.S., featuring a conversation discussing the merits of Bitcoin as a currency. Not surprisingly, many mainstream misunderstandings were showcased.

“People aren’t really using bitcoin to buy everyday items, and that is partly due to the fact that not a lot of retailers give them the option to spend it,” said digital correspondent Mackenzie Sigalos in the video. “You do have [some companies] that will let you use your crypto wallet directly in their website or in person but this is the exception to the rule.”

Bitcoin usage as a medium of exchange, the role of money on which the mainstream line of thought primarily focuses,  is very often debated. Most people argue that since Bitcoin’s price in U.S. dollars is quite volatile, it isn’t suited to be used for everyday transactions. Consequently, they erroneously conclude that bitcoin is not money. However, money has more functions than just being a medium of exchange; it historically follows a monetization path as its awareness and adoption increase worldwide.

“Historically speaking, such a generally esteemed substance as gold seems to have served, firstly, as a commodity valuable for ornamental purposes; secondly, as stored wealth; thirdly, as a medium of exchange; and, lastly, as a measure of value,” wrote marginalist economist William Stanley Jevons.