What is it about?
This paper argues that debates about whether Bitcoin and other cryptocurrencies are “real money” are missing the point. Instead of seeing cryptocurrencies as global currencies competing with dollars or euros, the study proposes thinking of them as “money-worlds.” Each cryptocurrency, like Bitcoin or Ethereum, functions as its own self-contained economy, with unique rules and purposes defined by its blockchain. For example, Bitcoin operates as a simple economy where miners validate transactions and get paid in bitcoins. Ethereum, on the other hand, enables more complex economic activities, like smart contracts and digital collectibles, all valued in its currency, ether. These systems don’t replace national currencies but coexist as specialized, local economies within the broader digital landscape. By shifting the focus to these money-worlds, the paper opens up new ways to think about cryptocurrencies—not as rivals to national currencies but as distinct economic ecosystems with their own rules, value systems, and participants.
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Why is it important?
This paper is unique because it reframes the conversation about cryptocurrencies. Instead of asking whether they are “money,” it asks where and how they function as money. This perspective makes it easier to understand cryptocurrencies as part of a broader economic landscape, rather than forcing them to fit into traditional definitions of money. It’s timely because cryptocurrencies are becoming more integrated into global finance, yet their role remains misunderstood. By focusing on their localized use within specific systems, this paper offers a framework for policymakers, technologists, and researchers to approach regulation and innovation in a way that aligns with how these systems actually operate.
Perspectives
Cryptocurrencies often spark polarizing debates—either they’re the future of money, or they’re just speculative assets. This paper cuts through the noise by showing that cryptocurrencies don’t have to fit neatly into either category. Instead, they create their own unique economic spaces, where their value and purpose make sense. I especially appreciated the analogy to Monopoly money, which highlights how context defines what we consider “money.” It’s not about whether cryptocurrencies can buy you a coffee in the real world; it’s about how they work within their own ecosystems, like enabling transactions on a blockchain or powering digital marketplaces. This perspective feels both refreshing and practical. It challenges the overly broad claims often made about cryptocurrencies while providing a clear framework for understanding their role in the digital economy. For me, it’s a reminder that innovation often doesn’t replace old systems but creates parallel ones that serve different needs.
Dr. Adam Hayes
University of Lucerne
Read the Original
This page is a summary of: World monies or money-worlds: A new perspective on cryptocurrencies and their moneyness, Finance and Society, December 2021, Edinburgh University Library,
DOI: 10.2218/finsoc.v7i2.6629.
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