Author
Listed:
- Antonio Martínez Raya
(Department of Organizational Engineering, Business Administration and Statistics, Technical University of Madrid—Universidad Politécnica de Madrid (UPM), 28040 Madrid, Spain)
- Alejandro Segura-de-la-Cal
(Department of Architectural Constructions and Their Control, Technical University of Madrid—Universidad Politécnica de Madrid (UPM), 28040 Madrid, Spain)
- Javier Espina Hellín
(Department of Marketing and Market Research, CEU San Pablo University—Universidad CEU San Pablo, 28003 Madrid, Spain)
Abstract
Since its launch in 2009, Bitcoin has become a market disruptor due to its primary function as a virtual currency supported by blockchain technology and the high volume of economic transactions it facilitates. This article examines the key theoretical principles that have contributed to Bitcoin’s recognition as a cryptocurrency. It assesses whether Bitcoin meets the criteria for being considered a form of money and evaluates its importance as a financial asset. This analysis of Bitcoin from 2014 to 2025 reveals that it does not sufficiently fulfill all the typical functions of money, such as serving as an internationally accepted means of payment, a unit of account, a securities depository, and a standard for deferred payments. Despite its usual close correlation with stock indices in financial markets, a decentralized digital currency like this still does not meet the requirements of fundamental analysis. In practice, this leads to its exclusion as a currency, since it does not fulfill the functions of money nor fully qualify as a crypto asset, as its value is primarily based on investors’ expectations of high returns. Apart from a lack of foundation in tangible goods or services that justifies their value and dependence on new investors, the findings do not indicate conditions typical of a developed pyramidal model. Nevertheless, this does not prevent future technological innovations from responding positively to the functions of money or from offering real money services, especially those related to service innovation and the digital economy.
Suggested Citation
Antonio Martínez Raya & Alejandro Segura-de-la-Cal & Javier Espina Hellín, 2025.
"Assessing the Question of Whether Bitcoin Is a Currency or an Asset in Terms of Its Monetary Role,"
Economies, MDPI, vol. 13(12), pages 1-38, December.
Handle:
RePEc:gam:jecomi:v:13:y:2025:i:12:p:357-:d:1810450
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