Will bitcoin become a global currency
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Content:
- Why Cryptocurrency Is Crazy—Like a Fox
- Bitcoin Won't Be a Global Reserve Currency. But It's Opening the Box
- Bitcoin Is Not The Currency Of The Future
- Bitcoin could become ‘worthless’, Bank of England warns
- Bitcoin Is 3rd Largest World Currency: Deutsche Bank
- Sovereign cryptocurrency: Marshall Islands to launch world-first digital legal tender
- Legal or not? India’s budget raises questions, hopes for crypto
- India proposes 30% tax on crypto and NFTs income
Why Cryptocurrency Is Crazy—Like a Fox
Cryptocurrency and the underlying blockchain technology that powers it are amazing. Crypto will change commerce and global adoption of cryptocurrencies is, in my view, inevitable. But Bitcoin can never be one of those currencies. There, I said it.
In order to have a successful currency, it needs to have a number of elements. They include: scarcity, durability, divisibility, portability, acceptance and stability.
Bitcoin lacks stability. Now it appears that it will never be stable, hence removing its chances of ever being the global currency it has been touted to be. I once believed it would be our global currency — as I wrote in and in my first book, way back in But now its price shifts so radically, it would simply be too risky to ever price a forward contract in Bitcoin.
Neither party would embrace such pricing risk in a commercial arrangement. The most common argument for Bitcoin these days is that it is becoming what is known as a Store of Value. Many assets fall into this class: land, grains, commodities, precious metals and currencies. Bitcoin acolytes argue that its longer term upward trajectory makes it a store of value. Economically speaking, the opposite is true. Stores of value need to be just that — a store. It needs stay the same and be stable over long periods.
Just like a silo of grain or an ounce of gold would remain unchanged over time. It makes it a speculative asset. But to invest in it, based on that belief, would be pure speculation. And this is exactly what people are doing with it. If you ask anyone why they buy Bitcoin today, the honest answer is this: because they think it will be worth more later.
Hence: speculative asset, by definition. They are not immune to FOMO. This is a worry when it is shareholder funds. We only need to revisit the GFC to see how some of our most respected institutions can get sucked into bubbles. Of course, there are interesting counter arguments to the above. Surprisingly, we are yet to see the hyperinflation that usually accompanies excess liquidity. What we have seen this time is excess asset valuations, as well as booming equity and crypto markets.
My view is simple. The technology is good. We will end up with all modern economies using crypto as their national currencies. If they debase their dollars, a simple transition to a new government crypto could kibosh the debasing issue in one simple move.
Australia had a currency change as recently as and the Euro arrived only in At my first book launch in , I accepted Bitcoin as payment. Simply because it can be programmed with smart contracts — something Bitcoin cannot do.
In any case, the crypto we all end up using will be provided by our governments. Other crypto assets will trade as digital commodities, as part of the wider financial market mix.
Number 3 is very easy to execute — only accept tax payments in your local currency. Any government with a modicum of intelligence and an eye for history would never give up control of 3. Where to from here?
Bitcoin Won't Be a Global Reserve Currency. But It's Opening the Box
We use cookies and other tracking technologies to improve your browsing experience on our site, show personalized content and targeted ads, analyze site traffic, and understand where our audiences come from. To learn more or opt-out, read our Cookie Policy. As of today, Bitcoin is an official currency of El Salvador alongside the US dollar, after the Central American country became the first to adopt the cryptocurrency as legal tender. In 3 minutes, we make history. BitcoinDay BTC. But there are fears that the adoption of such a historically volatile currency could harm Salvadorans, and risk economic stability.
Bitcoin Is Not The Currency Of The Future
Now Deutsche Bank crowns Bitcoin the No. But the report has serious caveats and omissions. Deutsche Bank writes, "In terms of total currency in circulation, Bitcoin is the third-largest in the world, after the US dollar and the euro. Bitcoin and fiat currencies aren't an apples-to-apples comparison, for a number of reasons that DB acknowledges in its note, including that Bitcoin has a fixed supply capped at 21 million coins , while government fiat currencies do not. Still, DB is roughly estimating where Bitcoin sits in the world currency rankings by comparing its coin market cap to the value of total banknotes in circulation for the fiat currencies. DB warns in a footnote that these rankings "would change dramatically if we looked at monetary base, or M1 or M2, to define the universe of USD in existence. And of course, Bitcoin's market cap is dependent on its current price, which fluctuates constantly. As DB declares, "Bitcoin is here to stay and its value will remain volatile.
Bitcoin could become ‘worthless’, Bank of England warns
Cryptocurrency and the underlying blockchain technology that powers it are amazing. Crypto will change commerce and global adoption of cryptocurrencies is, in my view, inevitable. But Bitcoin can never be one of those currencies. There, I said it.
Bitcoin Is 3rd Largest World Currency: Deutsche Bank
Oliver Dobson lives in a town outside of Canada's financial nerve centre, a nearly three-hour drive from Toronto. How he earns his living is worlds apart from the traditional business of Bay Street. For the past few years, Dobson has been trading in cryptocurrencies, stockpiling a horde of digital coins that have suddenly skyrocketed in price. In the real world, he lives off of cash savings, but on the Internet, he works in myriad ways to harvest these tokens. Prices for these cryptocurrencies, which have less familiar names like ether and nano, are exploding because they're riding on the coattails of bitcoin, which has been on a feverish run.
Sovereign cryptocurrency: Marshall Islands to launch world-first digital legal tender
A 'proper currency,' as Donovan termed it, can be a stable store of value, providing certainty that it will be able to buy the same basket of goods tomorrow as it buys today. There is no such mechanism for switching off supply on most cryptocurrencies, and therefore their value can slide -- leading to a collapse in spending power. This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed. Never miss a story! Stay connected and informed with Mint.
Legal or not? India’s budget raises questions, hopes for crypto
John Hawkins formerly worked for the Bank for International Settlements and two central banks,. Nayib Bukele, president of El Salvador, has got himself a pair of laser eyes — on his Twitter profile at least. The law will take effect in September.
India proposes 30% tax on crypto and NFTs income
The world will run on one currency — and you will need an identification chip in order to use it. Everyone will be assigned an identification chip at birth, and this will be our new form of identification and currency. You will not be able to purchase or sell anything without this chip implant. This chip will make it more secure and convenient to purchase things in the future. EN RU.
As Bitcoin was celebrating its 10th birthday last month, most governments are fighting to regulate cryptocurrencies and tokens, while slowly but surely accepting the principles of a cashless society and a fully digital money world. Are cryptos going to threaten and disrupt national currencies? For some, the answer is obvious. And in a way or another, cryptocurrencies are a stone in the shoe for most governments and regulatory institutions. But what are or could be the main impact of the rise of cryptos on money issued by banks? How big is this number?
By Matthew Sparkes. Bitcoin is a digital currency which operates free of any central control or the oversight of banks or governments. Instead it relies on peer-to-peer software and cryptography.
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