The Analysis of the Monetary Attribute of Bitcoin

Abstract

Bitcoin,a new kind of electronic money,has drawn nation wide attention. This paper analyses the contest of Bitcoin and traditional currency based on the monetary attributes such as the nature of currency,the functions of currency and the issue mechanism of currency. The results show that Bitcoin is not essentially different from the essence of currency and it almost has the five functions of currency,however,due to the inherent features of Bitcoin's issue mechanism( the total amounts is fixed,the speed to get new Bitcoin is based on the algorithm),it is hard for Bitcoin to replace traditional currency to become future currency. Besides,this paper offers the reference and inspiration for traditional currency and other electronic money.