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Legal tender status is usually given to means of payment that can be easily transferred and used by the population in daily life.
To use bitcoin, or cryptocurrencies, a digital infrastructure including computers, smartphones, internet networks and connectivity must be in place. This condition makes it unrealistic for cryptocurrencies to become money. Bitcoin supporters say it is an investible asset. Investible, yes in the speculative sense, in my view.
Asset, I am not sure. There is an income stream associated with a financial asset. Granted, there are assets with a zero yield such as commodities, but they are traded because they have a practical use for production or consumption. Hence crypto prices are subject to violent and random movement. This brings up the other problem, store of value.
For something to serve as a store of value, it has to be liquid, universally accepted, and have a stable value.
Cryptocurrencies including bitcoin certainly do not have any of these characteristics. It would therefore only take a few whale wallets to manipulate the bitcoin market, causing violent price moves. Huge price volatility has made bitcoin and cryptocurrencies unsuitable as store of value vehicles. Contrary to the conventional wisdom that the finite supply of bitcoins and cryptos is a benefit and protects value, it is in fact a big problem for them being considered as money. The maximum number of bitcoins that can ever be mined is 21 million.
At the time of writing, there are already The last bitcoin would be mined in All cryptocurrencies have a finite supply and the speed at which they can be increased is uncertain and not controllable by anyone.
These supply limitations make cryptocurrencies unsuitable as legal tender because the static 'money supply' would deprive central banks of the ability to conduct countercyclical policy. They have skillfully twisted this supply problem into an argument for cryptocurrencies as a hedge against doomsday scenarios. I believe this is wrong.
Please do not hesitate to contact me. Past performance is not necessarily an indicator of future results. GM says:. Single Accounts Corporate Solutions Universities. Edit Newsletter Preferences. Cortano says:. Hence crypto prices are subject to violent and random movement.
China, which used to be the largest crypto mining country, has seen through the smoke and mirrors and has cracked down on trading and mining without reservation. This shows how quickly regulators could destroy the freewheeling, decentralised crypto market. China instead has created an official DCEP with centralised control.
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Reset Password Cancel. So para acrescentar, nao acham muito estranho esta sequencia de acontecimentos? Primeiro veio o virus, agora so se fala da cryptomoeda. Sao timings muito coincidentes. Fica tudo registado preto no branco. Se isso vai ter uma adesao a escala mundial como voces falam, entao eles terao de arranjar uma maneira de nao ser necessario andar a minerar certo? Coisa que muitos aficionados dizem que nunca vai acontecer….
Depois as bitcoin atingiram os dollars…. Essa empresa chama-se Blockstream e conta com muitos dos desenvolvedores da equipa do bitcoin. Bitcoin cai drasticamente para valores de Caos instalado. Ver Resultados. Bitcoin ultrapassou barreira dos Miguel says:. GM says:.
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