Bitcoin is not a currency, and other revelations

Bloomberg/John Authers

Repost from 5-23-2021

graphic image of a cannon firing a cannonball“My argument — not at all unusual — is that extreme changes in bitcoin’s value make it very hard to use as a currency. Who would want to denominate a large transaction in a currency that might dip or rise by more than a third in a matter of hours?”

USAGOLD note: John Authers fires a cannon shot at critics of his less than embracing stance on cryptocurrency. In particular, he rejects claims that it will someday replace fiat currencies. He says it is increasingly seen not as a currency but as a “growth asset which behaves in line with growth stocks.” He quotes Financial Times’ Rob Armstrong: “Bitcoin is best thought of as equity in a company whose only asset is a promising but unproven technology — this is not strictly true, but it is the right metaphor.” Auther’s detailed assessment is recommended reading at the link.

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