Cryptocurrencies have their own crypto cultures that express in the form of economics. Every blockchain is an experiment, and bitcoin is the most popular one on this list. Satoshi Nakamoto terms bitcoin as electronic cash. It has been projected as complete money with properties similar to both cash and gold. It works in parallel to established currencies and offers a system of exchange and value storage.
The Mixed Response to the Cash Narrative of Bitcoin
Its cash-like narrative has received a mixed response. Initially, users avoided using it for retail transactions. They preferred its centralized exchange and wallet options. These options undermined the privacy of users. The bitcoin price increase prevented users from spending it on retail purchases. While it has seen its adoption as cash in El Salvador-like places, it remains a non-state currency. It is limited to being a financial network with its non-changeable monetary policy. There are only 21 million bitcoins to go around.
Any change in its monetary policy will not be easy.
To make any monetary policy change in bitcoin will require increasing its supply. That can be done only when a majority of its stakeholders agree to such a change. Looking at its present mechanism, such a radical change is unlikely to happen. Bitcoin attracts investors and users mainly because it is an effective alternative to the established fiat currency system. Any change in its current policy will make it lose its original purpose.
On the other hand, ethereum remains a decentralized world computer with a native currency of its own. It has allowed the development of new token economies like NFTs, Defi, and DAOs.
