Summary. Bitcoin could potentially replace the U.S. dollar as the world's reserve currency, but for this to happen, the digital currency would need to make progress in several important areas. Currencies serve as a medium of exchange, a store of value and a unit of account.
Additionally, why is Bitcoin not a currency?
Despite its well known classification as a “cryptocurrency,” Bitcoin cannot be a currency because it has intrinsic value. While some would argue against it, the resources spent to issue new units ensure that, unlike fiat currency, Bitcoins cannot be created out of thin air.
On top of everything, can Bitcoin become a major currency? While the price of bitcoin is having a tough 2018, quietly, in the background, the bitcoin system is making steady progress toward becoming a viable, universal alternative currency.
For this reason, which is an advantage of Bitcoin as a currency?
Very Low Transaction Fees for International Payments Standard wire transfers and foreign purchases typically involve fees and exchange costs. Since bitcoin transactions have no intermediary institutions or government involvement, the costs of transacting are kept very low. This can be a major advantage for travelers.
Should Bitcoin be a legal currency?
However, the fact that the creation, use, and trade of Bitcoin (and the many other crypto-currencies like it) are not governed by any formal laws — because it's not considered a legal currency — makes many people and organisations reluctant to accept it as a method of payment — despite its popularity.