Is Bitcoin a Unit of Account?

A unit of account is a common monetary unit used by groups of people that transact. Each country typically has a national currency or has adopted another fiat currency like the US dollar. Each country population has a social understanding of what a dollar or peso or other unit means in their culture and market.

Bitcoin is a unit of account among people in the Bitcoin space at a very small scale today. Rather than using whole Bitcoin denominations, people talk about "Sats", short for Satoshis, which are 1 / 100,000,000 of a Bitcoin. So in Bitcoin communities people might buy and sell things for 10,000 Sats or 50,000 sats and those people are all in consensus on the value of that.

A critique of Bitcoin is that due to its price volatility relative to the US dollar that it is hard for it to be a Unit of Account. This is not accurate, and the same argument is not levied against fiat currencies that fluctuate relative to the US dollar. It simply incentives people to acquire and save the hardest currencies, i.e. Bitcoin.