Why is Bitcoin considered "outside money?"
Bitcoin [BTC] started out as a means of payment, but with time, it is becoming a store of value. While the asset has become more mainstream its utility continues to get questioned. Some call it digital gold for its similarities with the latter. Regulators continue to remain in a haze if they should regulate the asset under securities, commodities, or currency. The true identity of the asset is often challenged. However, the term “outside money” has now entered the frame. Inside Money v. Outside Money Earlier this year, Zoltan Pozsar, a former Federal Reserve and U.S. Treasury Department official who is currently at Credit Suisse brought to light the terms “inside money ” and “outside money .” Inside money is often referred to as fiat. Outside money on the other hand is basically “non-sovereign currencies.” Earlier this year, Pozsar noted how a new global monetary order was emerging as a result of the commodity crisis in the United S...