4/6/2023 0 Comments Bitcoin price december 2017![]() ![]() ![]() They will point to the devaluation of fiat currencies. But it's possible, though I think unlikely, that they could become more widely used in the future as a medium of exchange.īitcoin fanatics will take issue with all of the above. And they have significant limitations holding them back from developing into full-fledged currencies. As noted above, they are not widely accepted today as a medium of exchange. That they may be useful in limited circumstances and geographies doesn't, at present, make them a store of valueīitcoin and other cryptocurrencies can best be described as potential currencies. The problem, however, is that Bitcoin and other digital currencies are still not widely accepted as a medium of exchange. That's not the case in many parts of the world, where a digital currency free from government intervention and corrupt bankers could prove very useful. we have a stable currency and banking system. That argument didn't turn out so well.Īll of that said, one can certainly see a use for digital currencies in some parts of the world. It reminds me of the argument people made to justify the meteoric rise in real estate values ten years ago. A government can't step in and start "printing" more Bitcoin. While that's also true of digital currencies, they are limited in number. The number of Bitcoin is capped at 21 million. In other words, there's nothing backing the value of currencies today, like gold once did. dollar and other currencies are "fiat" money. Some Bitcoin acolytes have borrowed from the same playbook to call Bitcoin a store of value. It somehow gives the "investment" an air of sophistication. Gold apologists love to describe the precious metal as a store of value. By then, the cup of coffee you're trying to purchase is stone cold.īitcoin is not a currency in any meaningful sense of the word. ![]() It can take days to complete a single transaction. ![]()
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