8 Reasons Bitcoin Fails as a Currency

Introduced in 2009 by a pseudonymous software engineer (or group of engineers) named Satoshi Nakamoto, bitcoin has been hailed as an alternative to fiat currencies (those that have the imprimatur of a government), mainly due to its decentralized, virtual character. Indeed, no government controls its supply: Anyone can compete to "mine" bitcoins through a series of computationally intensive calculations, with the total supply fixed at the outset at 21 million.

However, the truth is that bitcoin does not currently fulfill any of the three traditional functions of money: Medium of exchange, store of value, and unit of account. Call bitcoin a cryptocurrency -- it's a fashionable term. Call it a speculative asset -- it is certainly that. But here are eight reasons bitcoin fails as a currency.