Bitcoin Square Cash App: How To Buy Bitcoin On The Cash App
3 Big Stock Charts for Monday: CMCSA, COL, ESS >>>
Bitcoin Is Still a Speculative Asset, Not a Currency
Bitcoin Is Still a Speculative Asset, Not a Currency
The value of any currency is based on what you can do with it
Bitcoin has always had major American players in its ecosystem. Coinbase,
But as China has cracked down on cryptocurrency, closing news sites and telling hotels
to offshore bitcoin exchanges, American players have shown renewed interest.
The result is that the cryptocurrency’s prices have shrugged off the Chinese moves. As of Aug. 24, bitcoin was trading at $6,546, slightly higher than it had been a week ago, and with a market cap of $112 billion. That’s slightly more than
on U.S. exchanges. Well, it’s a Swedish exchange-traded note called
While the Securities and Exchange Commission (SEC) continues to
at creating bitcoin ETFs, at least one commissioner, Other Things Like Bitcoins ,
claiming the agency overstepped its authority. The agency is said to be
) (owners of the New York Stock Exchange) has created Bakkt, which proposes to offer one-day futures contracts on bitcoin. It has
), which want a share of the data and payment traffic.
The biggest bitcoin bulls are now American, like venture capitalist Tim Draper, who has publicly predicted that it will reach
that the President himself has bought the cryptocurrency, which is why the Administration hasn’t followed through on threats last October to ban it.
, are all said to be looking to bitcoin for salvation. Reports that
Germany wants a payment system free of American participation
While bulls continue to predict big things, and bears predict an imminent collapse, what the bitcoin markets need more than anything right now is price stability.
An asset class subject to wild price swings can’t be a medium of exchange. You can’t export a shipload of American flags from China based on bitcoin when you don’t know what they will be worth when they arrive. Other Things Like Bitcoins
The more stable the price of cryptocurrencies becomes, the more useful it becomes as a medium of exchange. The best thing for bitcoin might be that we all shut up about it.
Another factor in creating stability might be to reduce bitcoin’s energy use. The energy use of mining it, even of maintaining its blockchain, makes it unacceptable as a mass financial medium.
may eventually provide for stable, environmentally friendly power, and a New York miner is also looking to use
. China’s crackdown may benefit crypto’s reputation because miners there were buying coal-fired electricity. Other Things Like Bitcoins
and a lower profile generally may all help bitcoin to a real future.
But the value of any currency is based on what you can do with it. It’s here that the SEC may be doing its best work,
But until people other than bitcoin traders are making money with it, the cryptocurrency will remain a speculative asset, not a currency.
is a financial and technology journalist. He is the author of a mystery novella involving bitcoin,
, available now at the Amazon Kindle store. Write him at
. As of this writing, he owned shares in MSFT. To follow the value of cryptocurrencies bookmark
https://investorplace.com/2018/08/bitcoin-is-still-a-speculative-asset-not-a-currency/. Other Things Like Bitcoins , https://investorplace.com/2018/08/bitcoin-is-still-a-speculative-asset-not-a-currency/.
21 Beverage Stocks to Buy for the Contrarian-Minded
Play The Future of Gene Therapy With These 5 Biotech Stocks
5 Financial Stocks to Buy With the Market at All-Time Highs
7 Fast-Moving Semiconductor Stocks Ready to Blast Higher
The 3 Big Reasons Google Stock Is a Long-Term Winner
21 Beverage Stocks to Buy for the Contrarian-Minded
Play The Future of Gene Therapy With These 5 Biotech Stocks
0 Reviews:
Post Your Review