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February 23, 2015 at 8:49 am
#21399
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At this point, I think Bitcoin is, at most, a localized medium of exchange among a small number of persons. Another small group invests in Bitcoin as an asset. They are anticipating a capital gain from holding Bitcoin, like investors in real estate. To be money, an item must be accepted as a medium of exchange by most people. It is, by definition, the most widely traded item in the market. For this reason, people conduct economic calculation in money.