The Three Different Bitcoins

July 21, 2019 / by Lou Kerner

Bitcoin #1 — A Peer-to-Peer Electronic Cash System (aka A Medium of Exchange, Currency, or Money)

Per Satoshi and his white paper, the original intention of Bitcoin was to be currency. For multiple reasons, today, Bitcoin is not very functional as currency. While there is a laundry list of merchants who accept Bitcoin, it is still a minuscule percentage of total merchants. There are many companies that are building on top of Bitcoin, and working to enhance Bitcoin, so it can evolve to a functional global currency. While it’s unclear if their efforts will be successful, what is clear, is that Bitcoin is not a functional currency today.

Bitcoin #2 — A Store of Value

This is the Bitcoin that got me excited. I believe that Bitcoin is the world’s best store of value. Gold has had a great 3,500+ year run as a store of value. Maybe the greatest run ever. But nothing lasts forever.

Bitcoin #3- Bitcoin As A Speculation Platform

At the peak of the crypto bubble in January 2018, I wrote a piece describing crypto as “.. the world’s first global casino”. I mean, Ripple was trading at a $342 billion value, fully diluted.