Bitcoin from Menger's perspective

Abstract

Currently, fiat money not covered in ore (e.g. in gold or silver) plays a key role in the world. Cashless payments are also becoming more and more common. The inflationary nature of modern fiat money and the lack of a real possibility of returning to bullion money were some of the reasons for the search for market alternatives, which in 2009 led to the creation of a virtual currency called Bitcoin. From the very beginning, Bitcoin has generated a lot of controversy and interest - both on the part of its users and economists. This study is intended to discuss the issues related to the complex process of Bitcoin formation from the perspective of economic theory (Menger's achievements). It is a chapter devoted not so much to Bitcoin itself, but to Menger's theory of money, i.e. its universality in the context of Bitcoin. The study tries to answer the question whether this theory can help better understand the genesis of Bitcoin and its evolution as a medium of exchange/money.