You are right that bitcoin is a commodity, but I disagree about your condition for currency. It doesn't suddenly become money when some government "recognizes i

You are right that bitcoin is a commodity, but I disagree about your condition for currency. It doesn't suddenly become money when some government "recognizes it" in an arbitrary way. People make comparisons to gold, but gold is also a commodity (whether the government accepts it for taxes or not), and we now know that using gold as if it were currency is a very very bad idea[1]. A currency is a unit of measurement, while commodity is something with (perceived) value that can be traded. Those are not the same: The commodity itself has utility; and that utility can be measured in the units of a currency. The currency itself is not valuable; it merely measures the value of something else. For example, a dollar in your wallet might measure the time you spent (a valuable thing) producing its fraction of your paycheck. It's the difference between a kilometer, and something that's a kilometer long; say a length of chain. Many things have length, but they are not standards of measurement. Bitcoin has "length" (it is valuable, for now), but it is not a very good standard of measurement for wealth. Its demand fluctuates, but its supply is fixed by the algorithm. Therefore its value is demand-driven, and there is no upper or lower bound to what its actual value could be. Compare to a "real" currency, whose supply is increased or contracted by a central bank to ensure that the value changes slowly and predictably. Given sound decision making, a centrally-managed currency can be a consistent measure of wealth no matter how many or how few people want to use it. So as we all know, Bitcoin's value fluctuates significantly, and therefore does not measure a consistent amount of wealth. So this makes it a terrible currency. Its volatility also can't be fixed by wider adoption or "recognition" by the government, because a fixed supply is built into its very design. So it will never be a reliable standard of measurement for wealth. [1] https://en.wikipedia.org/wiki/Nixon_shock https://en.wikipedia.org/wiki/Nixon_shock