An asset accepted in exchange not primarily for consumption, but because it can be passed on in later trades.
Medium of exchange is best understood as part of a system rather than as an isolated definition. Its related coordinates show the mechanisms, incentives and historical records that give the term practical meaning.
Medium of exchange is an analytical lens, not a slogan or automatic proof that every claim about Bitcoin is correct. Use it to trace scarcity, incentives, prices, time and human choice, then compare the reasoning with the protocol’s verifiable rules.
Understanding Medium of exchange helps distinguish a verifiable Bitcoin mechanism or historical record from slogans, products and market narratives.
For the clearest picture, read this entry together with Unit of account, Store of value, Salability, Regression theorem. The reverse links also lead from Regression theorem, Commodity money, M1, Velocity of money.
Linked to related atlas coordinates
Grounded in a source record
Explains function and trade-offs
Part of the open Bitcoin knowledge graph