Bitcoin is not enough

Bitcoin is a significant step in the evolution of money, but it is not money. There are at least two reasons why bitcoin can't become money: volatility and privacy.

Volatility

Bitcoin has a perfectly inelastic supply which, along with frequent demand shocks, causes high volatility in its price. This volatility is a good feature for speculators but not regular money users.

Since its creation, bitcoin has shown eye-popping performance and become a part of corporate treasuries, but this success stops it from becoming money. No one will use an asset as a means of payment if this asset could appreciate. Everyone will hold it and use something else for everyday purchases. Gresham's law says that bad money drives out good — but in the case of bitcoin, an asset is just too good to become money.

Privacy

Bitcoin is pseudonymous, but the whole history of bitcoin transactions is recorded forever in a public database. Today there are paid services allowing one to identify bitcoin (and other cryptocurrency) holders and track their transaction history. Spying on crypto whales is just the tip of the iceberg.

Throughout the history of money, cash has had a transaction privacy feature — this is a core feature of money. Bitcoin is digital, but it is not cash. Even central bankers admit that cash transactions respect our fundamental right to have our privacy, data, and identity protected in financial matters. It is not about shady deals. It is about economic efficiency and human rights.

The issues are apparent, and partial solutions already exist.