From collectible to store of value. How bitcoin scores on the properties of money, and where bitcoin stands today.
Good money should be scarce, durable, easy to move, divisible, uniform and widely accepted. For digital money, it is often added that the rules must not be changeable at will.
Bitcoin scores highly on most of these. Supply is fixed, the history is hard to change, and value can be moved around the world in minutes.
Acceptance is the property where bitcoin is weakest. Many people own bitcoin, but few places price goods in bitcoin, and only a handful of countries have made it legal tender.
In the debate about bitcoin, a four-stage model is often used. New money starts as a collectible, then becomes a store of value, then a means of payment and finally a unit of account.
Not all economists agree that money develops this way. The model is still useful for describing bitcoin's journey so far.
In the early years bitcoin was a collectible for enthusiasts. Today bitcoin is mainly used as a store of value and an investment, by individuals, companies and institutions.
In countries with high inflation or capital controls, bitcoin is more often used for payments and transfers. Globally, however, almost everything is still priced in ordinary currencies.