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RE: Bitcoin Vs Fiat Currency: Which Fails First?

in #bitcoin8 years ago

What is money? basically

  1. Measure of value: Bitcoin isn't a measure of value because it has too high volatility (in facts, 99% of those who accept payment in bitcoin converts as soon as it can on an exchange for fiat; The others are accepting BTC as an investment, non usable money).
  2. Payment instrument: Bitcoin isn't a payment instrument first because simply it isn't usable (it can handle less than 1/1000 of all transaction of the world, with more network becames frozen) and second because use costs are very high (10-20 dollars for transation). We will probably need to wait for better developements of bitcoin (lightning network at the end of 2018?) or use other cryptocurrencyes (like litecoin)
  3. Store of value: bitcoin isn't store of value because it s price is too unstable. A money that can loose 10% in 60 minutes is not a store of value, it is only a very interesting speculative asset.

So, waiting for future evolutions, this bitcoin can't be considered an efficient money. It is simply the first of a new asset-class and a laboratory for the developement of blockchain. But no, at the moment it isn't the new world free money