When will Bitcoin become a unit of account?
Sooner than you think.
Much has been said of Bitcoin as a medium of exchange. In my mind, the debate about that is over. Bitcoin is being used as a currency in El Salvador and other places.
So now, the intriguing thing is when (if ever) Bitcoin will become a unit of account. Anything is possible, so it may never become a unit of account. It’s also possible that it will become a unit of account. I also don’t think it’s just conceivable: I think it’s plausible. However, I am not saying it will happen overnight. That would indeed be silly.
A unit of account is just prices being represented/measured in a certain way. So, Bitcoin being a unit of account would mean that items are priced in Bitcoin. This would mean that if go to the grocery store, then things are priced in Bitcoin. This would mean that when I pay for gas, things would be priced in Bitcoin. When I buy stocks, they would be priced in Bitcoin. Currently, products are priced in U.S. dollars for the most part.
The issue is not that people haven’t come up with a way to divide Bitcoin in the way that the U.S. dollar is divided into things like nickels and dimes. For example, see below:
