Commodities turn into money in stages.
Stage 1: The commodity is used store of value.
Stage 2: It becomes a widely accepted medium of exchange.
Stage 3: The commodity is used to assign value to goods and services.
We proceed from stage 1 to stage 2 when enough people are using a commodity as a store of value.
We move from stage 2 to stage 3 when the commodity is widely used as a medium of exchange.
#Bitcoin is somewhere between stage 1 and stage 2.
As more people see how well it portrays the characteristics of a store of value (durable, scarce), they start accumulating it to save for the future.
Eventually, the people who want to hold it as a store of value also want to start accepting it in exchange for goods and services. They create and sell some form of value, whether it's their time or an actual good.
At this point, the people who have held their Bitcoin for a while are willing to part with their coins which have significantly appreciated in terms of purchasing power. To be a medium of exchange, money has to be portable and divisible.
This is where Bitcoin is today! More companies are saying they want to accept #BTC in exchange for their product offerings.
When enough merchants accept Bitcoin for their goods and services, customers may start asking for prices in terms of Bitcoin. In this case, fungibility and salability play a role.
We are still very early when it comes to #Bitcoin , but most average people think we should be a lot further along. How is that possible when 99% of the world doesn't get how money works?
It takes longer than a few years for a form of money to be widely accepted. Today, the only thing holding Bitcoin back is the willingness of people to learn about it.
It took gold 2,000 years to move from being a store of value to a medium of exchange. Bitcoin's adoption has been much faster due to the internet. It's only taken 15 years for Bitcoin to almost reach the same stage as gold in its progression.
We're a while away from Bitcoin being used as a unit of account, but progress happens slowly and then suddenly. Every 4 years more people see Bitcoin as something that will never go away.
With the speed at which we are progressing, Bitcoin could be a world reserve asset within 20 years!