The post What Is Money? appeared on BitcoinEthereumNews.com.

For many people, their first sense of Bitcoin is that it is magic internet money—something easily ignored and certainly not worth the time needed to understand it. Many of the people I talk to about Bitcoin say that their “plan” is just to ignore it until it goes away. As we will learn throughout this book, that isn’t really an option. Most people also laugh when presented with their first opportunity to exchange “real money” for bitcoin. But bitcoin is real money; better money than any of us have had in our lifetimes—and it is so much more. Both Bitcoin the network and bitcoin the digital token can be hard to define because they don’t just replace one thing and make it better. Bitcoin is the new, better version of gold from the ground and the paper dollar bill. Bitcoin is also the new, better version of your savings account and your checking account and your credit card. It is also the new, better way to send money internationally and to buy a cup of coffee down the block. Bitcoin doesn’t just replace the hard asset money and the currency, but also the payment rails, the political monetary policy, and even the central bank—all in one fell swoop. It is a completely new thing. To truly understand Bitcoin, you must understand the thing it aims to replace: money. What is money? Oddly enough, despite its centrality to almost everything we do, we rarely pause to consider the question. But we have to if we really want to understand what Bitcoin actually is. In the most fundamental form, money is any object that is used for some combination of the following purposes: 1. A medium of exchange (folks can buy stuff with it); 2. A unit of account (folks can reliably…

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Filed under: News - @ November 12, 2025 11:27 am