The 2008 white paper “Bitcoin: A Peer-to-Peer Electronic Cash System,” written under the pseudonym Satoshi Nakamoto, claims that Bitcoin was developed in reaction to the shortcomings of the established financial system. The main goal of Nakamoto’s project was to create a peer-to-peer digital currency that is decentralised and runs on a network without the need for middlemen like governments or banks. In addition to solving issues with the “double-spending problem,” which refers to the situation when the same digital token is spent more than once, Bitcoin seeks to facilitate safe, transparent, and international transactions.
Whatever your opinion on Bitcoin, it’s difficult to deny that it has become a huge success and that Nakamoto never could have imagined it would. For instance, the first known Bitcoin exchange for dollars occurred in late 2009, with the value of one Bitcoin set at $0.00099. Currently, the price per coin has skyrocketed to almost $35,000. If Bitcoin were a stock, its market capitalization would rank in the top 10 at $668 billion USD. We will try our best today to present objective justifications and supporting evidence for Bitcoin as a medium of exchange or store of value:
Justifications for using bitcoin as money
Bitcoin proponents emphasise that their currency has the ability to completely transform the established banking industry. In contrast to conventional banking systems or cross-border money transfers, they contend that Bitcoin transactions are quick, seamless, and offer cheap transaction fees. There is growing evidence that people adopting Bitcoin as an alternative currency are living in nations where hyperinflation is rife. Did you know that, relative to three countries suffering from hyperinflation, the price of Bitcoin recently reached an all-time high? (Nigeria, Turkey, Argentina) Considering that Bitcoin is well below its peak of $69,000 in relation to the US dollar, this is impressive.
At the moment, it is difficult to contest that Bitcoin serves primarily as a medium of exchange. Nevertheless, desperate people are turning to Bitcoin as a means of escape the financial jail that is persistent inflation in nations like Argentina, Turkey, and Nigeria. Bitcoin is not a sensible currency to use in nations like the US since the US dollar is far more stable.
Reasons to Support Bitcoin as a Valuation Store
Supporters of bitcoin contend that it functions as a store of value similar to gold. One of Bitcoin’s advantages over traditional currencies is that its supply is limited (only 21 million coins will ever be created), which prevents inflation. Additionally, proponents contend that the decentralised nature of blockchain technology and the scarcity of Bitcoin make it a trustworthy store of wealth. In 2023, Bitcoin has increased by more than 100% despite global inflation, escalating geopolitical tensions, and stock market instability. In the past, at times like the 2008 Global Financial Crisis and the 2020 Covid-crash, Bitcoin has not only survived but flourished. Gold and Bitcoin, which are often regarded as the primary stores of value, have gained momentum and separated from the equities markets in recent months.
In light of the US National Debt’s approaching $50 trillion (and projected to rise owing to geopolitical tensions in the Middle East and Europe), it’s difficult to argue against a substitute that is scarce and has maintained its worth since its introduction in 2009. More proof is given by the gold against bitcoin comparison chart.
The excitement surrounding the possible establishment of an ETF is just one aspect of the recent surge in Bitcoin prices. There is growing evidence that Bitcoin is more than just a trading platform; it’s also developing into a true currency and a store of value.

Cryptocurrencies have been hit hard by fears that interest rate hikes will end the era of cheap money, with the world’s biggest digital asset, bitcoin, down more than 56% from this year’s high. Several crypto companies have filed for bankruptcy or been forced to seek emergency capital infusions.

Singaporean crypto hedge fund Three Arrows Capital (3AC) filed for Chapter 15 bankruptcy on July 1. Once a formidable player in the digital asset space, 3AC’s downfall appeared to stem from the firm’s bet on the Terra ecosystem, which was behind it. terraUSD stablecoin failed. The token lost almost all of its value in May, draining nearly half a trillion dollars from the crypto market.

The highly leveraged 3AC was unable to meet calls for additional payment from the counterparties it borrowed from. As a result, crypto lenders BlockFi and Genesis Trading liquidated their positions in the firm. According to court filings, 3AC’s creditors say they are owed more than $2.8 billion.

CELSIUS NETWORK New Jersey-based crypto lender Celsius suspended withdrawals on June 12 and filed for Chapter 11 bankruptcy a month later, listing a $1.19 billion deficit on its balance sheet. It was valued at $3.25 billion in an October funding round. Celsius encountered complex investments in the wholesale digital asset market.

The company lured retail investors by promising annual returns of up to 18.6%, but struggled to meet redemptions as cryptocurrency prices fell. In its first bankruptcy filing, lawyers for Celsius said bitcoin mining could provide the company with a way to repay customers. Meanwhile, several state regulators are investigating Celsius’ decision to suspend customer selection, Reuters reported.

Crypto lender Voyager Digital, also based in New Jersey, has been a rising crypto star, reaching a market capitalization of $3.74 billion last year. But the collapse of 3AC dealt a major blow to Voyager, which was heavily exposed to the hedge fund. Voyager filed claims of more than $650 million against 3AC.

Voyager filed for Chapter 11 bankruptcy on July 6 and announced that it has $110 million in cash and crypto assets. Since then, the US Federal Deposit Insurance Corp has confirmed that it is investigating Voyager’s marketing of deposit accounts for cryptocurrency purchases that the company advertised as FDIC insured.

Crypto exchange FTX and Alameda Research, both founded by billionaire Sam Bankman-Fried, offered to buy all of Voyager’s digital assets and loans, with the exception of 3AC’s loans, and allowed Voyager customers to withdraw their assets from the FTX account. Voyager, however, dismissed the offer as a “low price offer” in a court filing.

Singaporean crypto lender Vauld filed for protection from its creditors in a Singapore court on July 8 after suspending withdrawals a few days ago. The company owes its creditors $402 million, The Block reports. Vauld is backed by billionaire investor Peter Thiel’s Valar Ventures, Pantera Capital and Coinbase Ventures. In a July 11 blog post, Vauld said it is discussing a possible sale to London-based crypto lender Nexo while exploring potential restructuring options.

Faced with a surge in withdrawals and a hit from 3AC, crypto lender BlockFi signed an agreement with FTX on July 1 that provides BlockFi with a $400 million revolving credit facility and includes an option that allows FTX to buy the company for up to $240 million.

BlockFi was hit hard by the cryptocurrency crash and implemented several cost-cutting measures in June, including cutting staff by 20% and reducing executive compensation. The company was valued at $3 billion in a funding round last year.