Depending on your source you will find a variation on the below list, however my favorite terminology on the “traits” of money are:
Durability; Divisibility; Portability; Recognizability & Scarcity
This term denotes a currency that persists across time and doesn’t deteriorate. Think precious metals. Without getting too scientific in relation to the decay of minerals over time, it’s easy to see that paper money is less durable than a zinc-based coin which in turn is less durable than gold. Unlike coins however, Bitcoin cannot be destroyed. It will last as long as the network lasts, which will be for as long as we have humans operating computers and an internet connection.
Whilst Bitcoin is hard capped at 21 million Bitcoins, each individual Bitcoin can be broken down into 8 decimal points, each called a Satoshi. This means that there are 2,100,000,000,000,000 satoshi’s that will be created (the equivalent to approximately 271 for every person on earth using 2020 data from a quick google search). It’s not so easy, however, to chop a gold nugget in half, or tear a bank note into fifths (well, easy it may be, but finding somewhere to spend it won’t!).
Portability means a currency or coin can be transported across space. There are a couple of factors here. One would be physically transporting currency, for example boarding a plane with it in your pocket. I’m sure you can immediately think of some issues such as weight problems associated with a pocket full of gold (not advised) and you’re going to get flagged if you have more than $10k in cash notes on you (also not advised). The second factor is that even transferring these currencies to a different party isn’t the easiest thing to do across borders. You are going to pay hefty prices in customs bills for sending gold (and you’re at the mercy of the postal service), and even with international bank transfers for fiat currency you have large fees to pay. Bitcoin however, being digital, doesn’t need vast amounts of space in your luggage and can easily be transferred with a password and an internet connection. Easy.
Recognizability refers to the verifiability of a currency. Is that a REAL $10 note in your pocket? Are you sure?! Could you with 100% certainty say that a piece of gold is as pure as it states, or is even gold and not some gold-silver alloy with a lower grade? There are millions if not billions, possibly hundreds of billions of dollars in counterfeits the world over. And not even just money as a currency: think of the value of art which can be transacted or used as a medium of exchange… How many art forgeries do you think are in existence, or that have been bought by unsuspecting buyers? It’s actually rife – google it.
Ok, this one is my favorite. People that are new to the space or exploring crypto for the first time seem to be unaware of this principle, but actually have real world experience of the reverse, and how it causes so many issues with the world economy. Basically, when you print a shit load of money, it’s value goes down. Think of Zimbabweans trying to purchase a loaf of bread with a suitcase full of $1,000,000 Zimbabwean notes and not having enough money. The same is happening in America with the trillions upon trillions of dollars’ worth of money-printing that has been going on as covid relief. I honestly fail to see how a significant economic disaster isn’t imminent. The by-products of mass money printing are inflation and interest rate hikes. Neither are good, and both demonstrate how the monetary system as we know it does not work.
You cannot create more Bitcoin. If there’s one thing I would like everyone to fully comprehend it is this. In order to create more Bitcoin you need to create a hard-fork or new crypto-currency. Good luck with that – I don’t care. The fact is that Bitcoin is hard-coded to only allow for 21 million Bitcoins. That’s it. On top of that, we KNOW that loads have been lost forever, meaning it’s even more scarce! Even gold isn’t that scarce as more is being mined every day. More currency = less value, and vice-versa, hence the intrinsic value of Bitcoin.
And that my friends, is why Bitcoin is the most superior currency ever.