I was reading a textbook on econ fundamentals today, looking at its descriptions of Commodity vs Fiat currency, and as an aside it mentioned Bitcoin is considered a commodity currency rather than fiat. It defined commodity currencies as money with 'intrinsic value' which makes sense to me, and makes sense when thinking about more natural commodity currencies like gold or silver coins. I can understand how gold and silver or other resources have a physical use and that use translates into a backing value for a commodity of a physical good like gold. I don't understand how bitcoin has this? At its base, without a trade partner there just is no use of a bitcoin? I mean *maybe* if we stretch to some kind of record keeping that people sometimes talk about, but that seems farfetched when record keeping is not really a hard to solve problem typically.
tl;dr: Why would bitcoin be a commodity currency like gold, if there is not really a use for bitcoins without trade?
Why is bitcoin a type of commodity (currency)?
byu/IProduceWidgets inAskEconomics
Posted by IProduceWidgets