9 Pages Posted: 6 Jun 2014 Last revised: 21 Jul 2014
Date Written: June 5, 2014
At present, bitcoin is held mostly as a speculative vehicle, little used to pay for goods and services. Its value has been unstable, which impedes bitcoin’s wider use as a payment medium. We explain why the value of bitcoin has been so unstable. Then, we discuss entrepreneurial efforts that might enable bitcoin to become a more commonly accepted payment medium.
Keywords: Bitcoin, Medium of Exchange, Store of Value, Unit of Account
JEL Classification: E40, E41, E42
Suggested Citation: Suggested Citation
Luther, William J. and White, Lawrence H., Can Bitcoin Become a Major Currency? (June 5, 2014). GMU Working Paper in Economics No. 14-17. Available at SSRN: https://ssrn.com/abstract=2446604 or http://dx.doi.org/10.2139/ssrn.2446604