Bitcoin isn´t a Currency per Definition!
Axel Weber, Chairman of the Swiss UBS and former Head of Germany´s central bank, stated that Bitcoin doesn´t fulfill all criteria of a currency and can therefore not be seen as one. In Detail he stated that...
"... the important function of a currency is, it’s a means of payment, it has to be generally accepted, it has to be a store of value and it’s a transaction currency. Bitcoin is only a transaction currency."
Back in 2015 he already criticized Bitcoin heavily and said it would be meant to fail due to the fact that there is no lender of last resort. While reading through the lines, that means Bitcoin doesn´t allow anyone to create new money out of nowhere to e.g.
Do we need a change in Definition?
Looking at the Definition itself I don´t think the Definition has to be updated as Bitcoin and other cryptocurrencies are able to achieve all the criteria. As soon as they are generally accepted the trading volume will be so high that the price doesn´t move any more than the exchange rates do today and will make them a store of value.
As it´s used for transactions already we can ignore that criteria for now. But there is the one thing a currency got to fulfill in order to be accepted and that´s the possibility for the officials to create huge additional amounts, whenever they might need it. They don´t state it officially but in my opinion that´s definitely a criteria for them.
As soon as Bitcoin will be accepted and used as a general currency the banks will loose their influence on the people and therewith their power over us. That being said it should be logical that many well known bankers want to stop it as they are afraid of the change as they don´t know what role they´d play in future.
What´s your opinion?
Will Bitcoin become a generally used Currency?
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Yeah a great topic @steembusiness. What bitcoin lacks in adoption currently, fiat currency matches in its failure to store value due to inflation. Fiat fails the "money test" too and in an arguably bigger way. Bitcoin is only going to become more prevalent so I think there will ultimately be a clear winner.
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CryptoCurrencies are in my opinion without question the better currencies as you can´t manipulate them, whenever it´s setup correctly. The only thing that worries me is, what happens, whenever someone gets all his funds stolen. I mean imagine you got family, get hacked and don´t have a single penny anymore the next day... A Bank could restore it but with crypto no one will help you...
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Banks aren't in the business of helping! In my mind, the cost of involving a party like a bank or visa is too heavy to warrant the benefit of refunds under such examples, especially when considering the fees they charge for being in our lives. Holding multiple different wallets and distributing holdings over these is one way to mitigate hacking. I still think we're much better off without them!
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To be frank I don't see Bitcoin becoming a Currency anytime soon.
But on another side we are seeing countries break apart due to their currency hitting rock bottom and their citizens migrating to Bitcoin.
So I have to say that in the future this may come true.
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Bitcoin is gold, it's a secure store of value but not much use in day to day life. That is where Ethereum, Dash/zCash, and, crucially, EOS will come in.
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Agreed, Bitcoin is rather the Gold among the CryptoCurrencies, just like @bigmantings mentions below. In my opinion we might actually see cryptos like Ripple conquer the currency market due to the low fees and the cooperation with banks. Especially international transfers could be handled easily via them.
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Establishment banks and corporations use the government to strengthen their hold on power, and limit the growth potential of wider society. Decentralised technologies of all kinds, but cryptocurrency especially threatens that systemic relationship between established power and the state.
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The biggest thread for banks is that they can´t simply print some more of it whenever they feel like it or to cover up the big mess they created once again...
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Check my earlier posts .. read yours n upvoted . Please do the same for me . Many thanks
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good
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I'm writing an article about this at the moment ^^
So true & Great inspiration
Thank you @steembusiness
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